BuildLoan has partnered with Buckinghamshire Building Society to launch a self-build product.

The development and bridging finance firm for brokers says the arrears stage payment loan offers a discount of 0.95% from Buckinghamshire’s standard variable rate for two years, which amounts to a rate of 3.79%, with a £1,499 completion fee.

This loan offers stage payments of up to 85% of build costs on completion of each stage of work.

The releases are linked to building costs rather than a site valuation, which the firms say removes the risk of a borrower not receiving the funds they expected.

The offer is available for self and custom build projects including barn conversions.

BuildLoan head of product development and underwriting Chris Martin says: “This product enables clients to get agreement up-front 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.”

Buckinghamshire Building Society Key Account Manager Claire Askham adds: “We are committed to supporting the ever-changing self-build sector through our range of mortgage products offered exclusively via BuildLoan.

“We believe this arrears product shows our commitment to support the self-build market and enhances the relationship we have with BuildLoan.” 

Last month, BuildLoan and Loughborough Building Society launched two self-build mortgage products that feature advance and arrears stage payments.