Saffron Building Society is now offering two large loan products for self-builds.

They have been designed for projects over £1m and up to £2m.

The first is available at up to 65% of the purchase price and 100% of build costs with a maximum 75% of gross development value. It is on a two-year discount offering an initial rate of 4.49%.

The second product is offered at up to 80% of the purchase price, 80% build costs and 80% maximum gross development value on a two-year discount also, this providing an initial rate of 4.69%.

In addition, the two products are available for custom build and first-time buyers.

Earlier this week, the government announced a new £150m ‘Help to Build’ scheme, designed to make it easier for people to build their own homes and launched a review into how to expand the practice.

Saffron interim head of mortgage sales Tony Hall says: “Our award-winning self-build products have always been a significant part of our offering as a society, so this is the natural next step.

“Brokers handling their first self-build mortgage enquiries from clients have been surprised by the product criteria, which can appear quite dissimilar than that of a typical mortgage product. But it is all about understanding the process and embracing it.

“We have tried to make this as simple as possible to encourage intermediaries to promote their self-build financing credentials as interest in building our own homes in the UK continues to increase.”