The mortgage products can be used for self and custom builds, renovations, conversions and home improvements.
Providing up to 85 per cent of the borrower’s land and build costs, the products offer guaranteed stage payments based on project costs, either in arrears or in advance. Repayments can be made on an interest-only basis.
Chris Martin, head of product development and underwriting at BuildLoan, said: “We’ve worked closely with the team at Vernon to develop these new products, which provide excellent value, while also meeting the needs of increasing numbers of self and custom builders who want to use more modern and efficient building methods.
“Funds are released based on actual build costs rather than relying on site value during the build and the advance option means that up to 85 per cent of the cost of each stage of work can be made available up-front.
These features mean clients will get the funds they are expecting during the build which reduces the risk of delays due to running out of funds.”
