Newcastle Intermediaries has increased the LTV for self- and custom build mortgages available via BuildLoan from 80% LTV to 85% LTV.

The lender now offers a zero-fee self-build variable product (arrears stage payments) with an initial rate of 5.89%. This comes with mortgage indemnity guarantee fees paid by the lender.

Custom build and self-build borrowers may also choose a two-year variable self-build product with an initial rate of 5.99% and zero product fee. This is available on an arrears and advanced stage payment basis.

Newcastle head of intermediary mortgages John Truswell says: “The future launch of the Help to Build Scheme should support more people build their own homes, so we’re pleased to increase the availability of our range through BuildLoan.

“It will provide more options for borrowers, especially those who may have less cash to invest in the initial build phase.”

And BuildLoan head of product development and underwriting Chris Martin comments: “These new products available through BuildLoan have some great features that meet the specific needs of self-builders.

“Stage releases are linked to build costs giving huge peace of mind that clients will always receive the funds they are expecting during the build.  The ERC-free and fee-free options provide the flexibility and cost-savings which can be really valuable to anyone building their own home.”