Residential

Most commonly used when the client wishes to purchase another property whilst their existing one is being sold.

It can also be used to release equity quickly for debt consolidation, business injection, purchase investment properties and home improvements.

High street lenders generally work off the discounted purchase price when assessing their advance levels. We always work off the Market Value of the property so this is advantageous for the client when purchasing at a discounted price or a sale at a price under the Market Value of the property.

Self build clients often under budget their completion costs and find they run out of money prior to the installation of the kitchen and bathroom. Most mortgage lenders will not lend against such properties as they are deemed “un-inhabitable”.

Criteria

• Market Value
• 80% (subject to criteria)
• Multiple properties
• Timber / Steel framed
• Council flats
• Barn Conversions
• Buy To Let
• Auction
• Family purchases
• Builder/vendor gifted deposits

Casy Study
A client had inherited a property with the plans to renovate it. Whilst applying for his mortgage, he decided to strip out the interior of the property including the kitchen and bathroom. However, when the surveyor arrived to value the property, it was deemed ‘uninhabitable’ and therefore he was unable to obtain the mortgage. The client was in a fix because he did not have any funds to complete the property and the builder was waiting his payment. He contacted Catalyst and got a bridging loan for £60,000 over six months. He was then able to install the bathroom and kitchen and also have funds left over for the luxuries, such as decorating and landscaping the garden. After six months he went back to the high street with a habitable property to obtain a re-mortgage.

It is advisable to use a specialist property lawyer in cases where bridging is necessary and to provide all the relevant documentation as quickly as possible. This is to ensure that timescales are met and any potential problems spotted as early in the process as possible.