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BuildLoan launches products for up to 90 per cent of costs

  • 11/04/2022
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BuildLoan launches products for up to 90 per cent of costs
BuildLoan has launched a new range of products with Newcastle Building Society offering self and custom builders up to 90 per cent of their land and build costs, reducing borrower's cash deposits.

The new products can provide up to 90 per cent of the project costs for loans up to £500,000.

For larger mortgages, up to 85 per cent of build costs are available for loans to £750,000, and 80 per cent of costs for loans up to £1m.

In the past, borrowers would need around 20 per cent of their land and build costs in cash, as well as funds to cover planning and architects’ costs – amounting to around £30,000 on average, according to the lender.

Chris Martin, head of product development and underwriting at BuildLoan (pictured), said: “We’ve created these products to make designing and building your own home more accessible for people who have a smaller amount of cash of their own to put into their project.

“These new products make building your own home a genuine option, particularly if customers choose a site where much of the planning and design fees are taken care of by the developer.

“We know that not having cash when they need it during the build is one of the biggest worries for self-builders. So all of our products guarantee funds at each stage of the build, with no valuations while the house is being built.”

Franco di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “We’re always looking for ways to support the needs of clients in areas of the market which are traditionally underserved.

“As well as offering loans up to £1m as standard, and up to 90 per cent of the value of the completed property, the range includes fee-free and ERC-free options, giving brokers and their clients even more choice.”

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