Working in partnership with the Buckinghamshire Building Society, BuildLoan has launched a £1 million mortgage products, as well as two other new products. The additional lender is a positive reflection of the appetite for self build lending by consumers.
The products are self build loans of up to 85% of the client’s build costs, and alleviate the issue of cashflow by releasing funds to the client in stages as construction progresses. The amount released at each stage is based on the cost per stage, which helps prevent the risk of stage releases being limited by a lender’s valuation.
In addition, the new range includes an advance stage payment product which provides funds at the beginning of each stage of work, a helpful model for self-builders with less cash freely available.
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, commented: “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 Buckinghamshire Building Society, said: “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.”