BuildLoan has introduced three self and custom build mortgage products with Buckinghamshire Building Society, with one paying up to £1 million.
All of the products in the range provide funds to the client in stages as construction of their property progresses and are designed to remove lack of cashflow, the main risk to self-builders.
The amount released is based on the cost of each build stage and removes the risk of stage releases being limited by a lender’s valuation. The products are for loans of up to 85% of the client’s build costs.
This new range includes an advance stage payment product which provides funds at the beginning of each stage of work.
The other two products provide funds on completion of each build stage including one for high value builds offering loans up to £1 million.
To keep costs down during the build, the products are interest-only for the initial two-year build period then convert to repayment.
Chris Martin, head of product development and underwriting at BuildLoan, said: “These new products in partnership with Buckinghamshire provide our clients with some great options. We are seeing more demand for higher value loans so the ability to lend up to £1 million is a great solution and will hopefully be well received by brokers.”
Claire Askham, key account manager (North & Midlands) at the Buckinghamshire Building Society, added: “We are thrilled that we are able to bring back self-build mortgages as part of our lending proposition. This new range will appeal to a variety of self-builders, particularly those with lower up-front funding as we will lend up to 85% of the build cost.”