The move follows Housing Minister Grant Shapps’ letter to mortgage lenders last year urging them to embrace the opportunities offered by new-build. In last year’s budget, the government announced a £30m self-build fund and also promised to release government-owned land to sweeten the deal.
The BuildStore loan offers self-builders up to 75% of the cost of the land, fixed for two years at 5.25%, reverting to SVR of 4.99% for term.
Raymond Connor, founder and chief executive of BuildStore Financial Services said: “We warmly welcome the addition of Loughborough to our lending panel and applaud its innovative approach in seizing the opportunity the self-build market offers.
“From self builders’ point of view, the net result of our partnership with Loughborough is enhanced product choice and support in providing positive cash-flow at every stage of the build, which is critical to anyone undertaking a bespoke build project.”
The Loughborough’s chief executive, Gary Brebner, said: “Working with BuildStore to engage with self builders fits perfectly with the society’s values as a customer-focussed mutual. We fully support the government’s commitment to self build as a viable route to sustainable housing in addition to the boost in local employment that it can provide.”
Data from the BSA out today showed mortgage approvals by mutuals were up 45% in the first six months of the year compared to the same period in 2011.
In June, approvals were up by 35% compared to the same month last year and were 20% higher than the average over the previous six months.
