BuildLoan and Buckinghamshire Building Society have joined forces to release three new self and custom build mortgages, including a loan with a maximum borrowing amount of £1m.

Two of the products are available at up to 85 per cent of build costs and all three are interest-only for the first two-year build period before converting to a repayment structure.

The advance product asks for minimum of £150,000 and a maximum of £500,000 and is set at 4.89 per cent for two years. It is broken down as follows: 80 LTV per cent land, 85 per cent LTV cost, 80 per cent LTV end value.

With this mortgage, funds are released at the beginning of each stage.

The first arrears product, which provides funds upon completion of each stage, has a minimum loan of £150,000 and a maximum loan of £600,000. It has a rate of 4.29 per cent for two years and has the following structure: 80 per cent LTV land, 85 per cent LTV cost, 80 per cent LTV end value.

And the second arrears mortgage has a minimum loan of £600,001 and a maximum of £1m. The rate is 4.59 per cent for two years and is 75 per cent LTV land, 80 per cent cost, 80 per cent LTV end value.

BuildLoan head of product development and underwriting Chris Martin says: “We are seeing more demand for higher value loans so the ability to lend up to £1m is a great solution and will hopefully be well received by brokers.”

And Buckinghamshire key account manager (North and Midlands) Claire Askham adds: “We are thrilled that we are able to bring back self-build mortgages as part of our lending proposition. This new range will appeal to a variety of self-builders, particularly those with lower up-front funding.”