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BuildLoan and Bath Building Society release self and custom-build mortgage range

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  • 02/11/2021
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BuildLoan and Bath Building Society release self and custom-build mortgage range
Self-build and renovation mortgage specialist BuildLoan and Bath Building Society have released four self and custom build products to replace the mutual’s existing range.

 

The products are available at interest rates of up to 0.25 per cent below the previous range with the lowest rates starting from 3.65 per cent compared to 3.9 per cent previously.

The products provide up to 95 per cent of land and build costs, and include a two-year discount rate of 3.65 per cent with a maximum loan to value (LTV) of 85 per cent. There is also a two-year discount rate priced at 3.85 per cent with a maximum LTV of 85 per cent.

The range comes with advance stage payments so payments are released based on build costs, rather than a site valuation, which mitigates the risk of a client not receiving funds as expected.

The lenders said it also benefits carbon-friendly construction as costs are heavier at the start of the build.

Chris Martin, BuildLoan’s head of product development and underwriting, said: “These new products offer great features for self builders, particularly those needing to borrow a higher proportion of their build costs or needing funds up-front to pay for a build system such as a timber frame.

“The stage payments are agreed at application stage based on build costs which takes away the uncertainty of products where stage releases during the build are subject to a valuation of the site by the lender.”

Ben Hutchings, Bath Building Society’s mortgage sales manager, said: “We recognise that cashflow is vital to self-builders which is why all of our products offer up-front guaranteed stage payments linked to the cost of each element of the building project. These features are incredibly important to clients to help them complete their build successfully within their planned timescale.”

BuildLoan partnered with Buckinghamshire Building Society earlier this year to launch a custom and self-build mortgage product, which boasts an initial pay rate of 3.79 per cent with a £1,499 completion fee.

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