Catalyst is a UK-based principal lender founded in 2009, offering several financial products to individuals and SMEs, including a range of bridging loans.
The lender is often praised for the quality of its customer support, their wide choice of bridging finance, and their high maximum LTV of up to 80%, which is more than a lot of its competitors.
In this review, I will detail Catalyst’s loans’ key features, eligibility criteria, application process and rates to help you decide whether it is the right lender for your specific needs.
Catalyst Bridging Loans: Overview
Catalyst offers unregulated bridging loans from £100,000 to “10M for both commercial and residential needs.
You can use these loans to quickly secure property purchases, fund refurbishments, raise capital, or refinance existing loans.
Key Features Include
- Bridging loans from £100k up to £10m, with up to 80% LTV available
- Rates start from 0.90% per month for terms from 3 to 24 months
- Up to 80% LTV
- No Early Repayment Charges
- Interests can be serviced, blended or retained
- Purchase, refinance with no cash out, refinance with cash out, development exit and auction finance are accepted
- 1st & 2nd charge loans available
- Inexperienced borrowers are considered
- Adverse credit can be considered through Catalyst’s flex bridging feature
Catalyst has an overall great reputation, catering to most needs with a wide choice of bridging products, great flexibility and responsive customer support.
What are the Eligibility Criteria for a Catalyst Bridging Loan?
Please note that the following criteria apply to most of Catalyst’s bridging products. However, if you don’t meet all these requirements, have a look at the lender’s Flex Bridging options, which are more permissive, especially concerning credit history and experience.
Catalyst Bridging Borrowers’ Criteria
| Criteria | Value |
|---|---|
| Nationality | UK individual / LTD Co/ LLP Offshore LTD Co |
| Minimum Age | 21 |
| Maximum Age | 85 at the end of the term |
| Credit Profile | Good credit history required / Adverse credit considered through “Catalyst Flex Bridging” |
| CCJs | Maximum £10k CCJs in the past 24 months, settled |
| Rolling Arrears | ✅ |
| Missed Mortgage Payments | Up to 4 in the last 12 months / None in the last 6 |
| Bankruptcy / IVA / CVA | It must be more than three years since your last one |
Catalyst Bridging Property Criteria
| Criteria | Maximum LTV & Conditions |
|---|---|
| Location | England & Wales |
| Very Light Refurbishment | Up to 10% of OMV. Up to 25% of OMV is considered when funded by the client |
| Development Exit Finance | Accepted for remaining works if below 10% of OMV, higher by exception |
| Residential | Up to 80% LTV |
| Semi-Commercial | Up to 75% LTV – Residential elements must be >50% |
| Commercial Property | Pre-planning to 65% LTV. The property must have an obvious C3 mixed-use/ residential opportunity |
| Properties Above 70% LTV | Maximum unit value £750,000. Higher considered by exception |
Application Process for Catalyst Bridging
Applying for a bridging loan with Catalyst is as simple as it gets. The lender has a Quick Loan Enquiry service, where you input your personal and loan details. Once you’ve submitted your details, Catalyst’s team will be in touch to guide you through the next steps.
Catalyst also provides useful documents and forms directly on their website, which means you can act ahead and fill in everything that’s required before applying, ensuring the process remains quick.
The front-end process is as quick and straightforward as you might expect, with minimal information needed upfront. More due diligence comes before formal approval for larger loans. Overall, Catalyst looks to deliver efficient bridging finance through technology and selective requirements.
Catalyst Bridging Rates
Here are the Catalyst bridging loan rates for 2023.
Catalyst Bridging Short-Term Bridging Rates
First Charge
| LTV | Rates From |
|---|---|
| 65% | 0.90% |
| 70% | 0.95% |
| 75% | 0.99% |
| 80% | 1.09% |
Second Charge
| % of 180 Day Value | Rates From |
|---|---|
| 65% LTV | 0.99% |
Catalyst Commercial Bridging Rates
| % of 180 Day Value | BBR Tracker Rates From |
|---|---|
| 65% LTV | BBR + 9% Per Annum |
Flex Bridging Rates
| % of 180 Day Value | Fixed Rates From |
|---|---|
| 70% LTV | 0.99% |
Catalyst Reviews & Ratings
An important thing to know is that, like many independent lenders, Catalyst does not gather a lot of reviews online. While this might worry some, I believe the quasi-absence of negative reviews is a good sign of Catalyst’s trustworthiness.
Catalyst receives an excellent score of 4.2/5, with customers praising the staff’s responsiveness and the overall quality of customer support. Interestingly, the only negative review I could find also mentions customer service.
Negative reviews are limited compared to the overwhelming positive feedback.
In summary, reviews indicate high customer satisfaction with Catalyst’s lending services, owing to fast processing and helpful staff. While a minority of customers have faced challenges, the overall sentiment toward Catalyst is very favourable.
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Catalyst FAQs
How does the loan approval process at Catalyst compare to traditional lenders?
The approval process at Catalyst is streamlined to ensure quick decisions, often within a few hours. Unlike traditional lenders, they focus on the value of the asset and the exit strategy rather than solely on the credit score of the applicant.
Can Catalyst Bridging Loans be used for commercial purposes?
Yes, Catalyst Bridging Loans can be used for a variety of commercial purposes including property acquisition, business cash flow, or even to cover unexpected business expenses.
What types of properties are acceptable as collateral for a Catalyst Bridging Loan?
Catalyst accepts a wide range of properties as collateral including residential, commercial, and mixed-use properties. Their flexibility in accepting different types of collateral makes it easier for borrowers to secure the necessary funds.
How does Catalyst handle early repayments?
Catalyst has a clear policy regarding early repayments which allows borrowers to clear their debt ahead of schedule. It’s advisable to discuss the specifics directly with Catalyst to understand any associated costs or benefits.
Are there any upfront fees associated with Catalyst Bridging Loans?
Catalyst has a transparent fee structure, but there might be some upfront fees associated with the bridging loan. It’s advisable to discuss the fee structure directly with Catalyst to have a clear understanding of all costs involved.