Beverley Building Society says it has cut the rate on its self-build mortgages by 76 basis points as homeowners reconsider their housing needs following the pandemic.

The Humberside-based mutual has cut its rate on these types of home loans to 3.49% for the period of the build, with a maximum of 80% loan-to-value and a 1% product fee.

It adds that once the project is complete borrowers can move to another society scheme, or pay an early repayment charge.

The number of people who joined the national self-build register rose by 25% to 58,813 in the year 2021, the firm says, citing the latest government data. This followed a 50% rise in the number of such homes being built in each of the previous two years, to 15,000.

The then housing secretary Robert Jenrick launched a review to smooth the self-build application process in October 2020.  As part of the review, Right to Build day was introduced, which requires local authorities, on each anniversary of the review’s launch, to have granted planning permission to enough suitable plots to reflect the number of people registering in their areas.

Beverley Building Society head of new business lending, Simon Glass says: “We all know that the UK is a nation of property-lovers, fuelled, in part, by popular primetime TV shows. This, plus COVID-19 isolation and homeworking are leading people to reconsider their housing needs – plus, perhaps, a desire to achieve their property vision more cost-effectively – are all fuelling a rise in the number of people needing a self-build mortgage.

“Hence why, once again, we are responding to a more complex need among borrowers, with a solution which is both flexible and very cost-effective compared to others out there.

“We have extensive experience in both self-build properties and complex renovations such as barn conversions – as well as unusual properties such as those subject to agricultural conditions or situated on large amounts of land. We also take a flexible approach to the build stages at which we will release funds.”