Catalyst, a specialist lender in the UK, has announced a unique promotional offer for those seeking bridging loans. In a move described as “going Dutch,” the lender is now offering to cover half of the valuation fees for eligible bridging loan borrowers. This cost-sharing initiative could save borrowers significantly, with Catalyst chipping in up to £1,500 including VAT per loan facility.

The offer is available for a limited time during the months of May and June. It applies to a variety of Catalyst’s loan products under specific conditions:

• Everyday Bridging Loans: For standard short-term financial needs.
• Refurbishment Projects: Limited to refurbishments costing less than 10% of the property’s Open Market Value (OMV) without structural changes.
• Development Exit Finance: Aiding those transitioning from development loans to standard finance.
• Auction Finance: For properties purchased at auction.
• Latitude Buy to Let: For long-term residential property investments.

To qualify, loans must range between £500,000 and £5,000,000. The loans must be secured with a first charge against either a residential property or a semi-commercial property, with at least 50% of the property being used for residential purposes.

Non-Qualifying Criteria

Certain conditions disqualify loan applications from this promotional offer:

• Non-Standard Lending: Loans that do not meet Catalyst’s usual lending criteria.
• Commercial Properties: Loans secured against purely commercial properties or land.
• First-Time Borrowers: New customers without previous borrowing history with Catalyst.
• Second-Charge Loans: Additional loans secured against property already under a primary loan.
• Major Refurbishments: Projects with costs exceeding 10% of OMV or involving structural modifications.

Chris Fairfax, the CEO of Catalyst, emphasises the uniqueness of this offer compared to typical refund promotions. “While many lenders, including us, have previously offered valuation fee refunds, this time we’re making our contributions upfront,” he explained. This approach ensures that as soon as a borrower invests in their valuation fee, Catalyst immediately contributes their share, enhancing the affordability and accessibility of bridging loans.

Fairfax further shared the company’s motivation behind this initiative, highlighting a commitment to supporting brokers and their clients. “We understand that valuation fees are often the largest upfront cost in bridging finance. By offering to shoulder half of this cost upfront, we aim to alleviate some of the financial burdens and strengthen our alignment with our customers’ needs.”