The arrears stage payment product offers a discount of 0.95 per cent from the mutual’s standard variable rate of 4.74 per cent for two years, giving an initial pay rate of 3.79 per cent with a £1,499 completion fee.
It offers stage payments of up to 85 per cent of build costs on the completion of each stage of work. Payments are released based on build costs, rather than a site valuation, reducing the risk of a client not receiving funds as expected.
Funds are available for self and custom build projects including barn conversions.
Chris Martin, head of product development and underwriting at BuildLoan, said: “This product enables clients to get agreement upfront regarding the amount of funds that will be released at each stage of their project.
“This gives them a huge amount of peace of mind that the funds they receive aren’t put at risk by a down valuation during the build. This is a really important benefit to self-builders to ensure their project progresses as they expect.”
Claire Askham, key account manager at Buckinghamshire Building Society, added: “We are committed to supporting the ever-changing self-build sector with our range of mortgage products offered exclusively through BuildLoan.
“We believe this arrears product shows our commitment to support the self-build market and enhances the relationship we have with BuildLoan.”