The self-build deals are available exclusively through BuildLoan and include three Arrears Stage Payment and three Advance Stage Payment products.
The products are aimed at customers looking for loans from £50,000 up to £3m to build their own home.
The self-build deals last for an initial two-year period, with discounted variable rates beginning from 5.64% with a maximum loan to value (LTV) of 90%.
The loan-to-income (LTI) ratio for larger-loan deals has been increased from five to 5.5 times income.
All products are available for purchase and remortgage in England, Scotland and Wales and come with a £1,500 arrangement fee.
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
Jon Cartlidge, head of member and broker strategy at Furness Building Society, commented: “Our new self-build products, available through BuildLoan, offer our broker partners and their clients more options for building, renovating or converting their own homes – including borrowing more to make projects possible.
“With our flexible, human-led approach to lending, we’ve also been able to increase the loan to income for our larger-loan products. And because every application is assessed manually by our underwriters, we can consider clients with more complex income streams.
“Brokers interested in self-build mortgages can contact our BDM team for an initial conversation, after which cases are referred directly to BuildLoan for full application support.”
Chris Martin (pictured), head of product development at BuildLoan, added: “We’ve designed these large-loan products with Furness Building Society to provide brokers with more options for their self-build customers looking to build their extra-special home, whilst still benefitting from the package of Consumer Duty-focused benefits only available via BuildLoan. The higher loan-to-income approach combined with a sensible affordability review makes greater levels of borrowing accessible to more homebuilders and renovators.
“All products provide stage releases agreed as part of the application and linked to the cost of each stage. This approach takes away the risk of down valuation during the project and makes sure clients get the money they expect to keep their build moving.”
