A self-build mortgage has been launched by introducer 3mc with funding by Dudley Building Society.

Available for purchase and remortgage, it is being offered at an interest rate 4.69 per cent – a 0.8 per cent discount on Dudley’s self-build variable rate.

The maximum loan-to-value is 80 per cent, and the lending limit is £500,000.

Sam Ward, head of commercial at Dudley Building Society says: “Self-build is a small but significant part of the market and one which requires specific expertise. 

“3mc has not only demonstrated its commitment to introducing quality business to the Society over time but are committed to working with us to develop the self-build proposition for the future.”

The UK has a much lower rate of self-building than other European countries. The sector currently accounts for between 7-10 per cent of completions while in Austria it accounts for around 80 per cent, according a House of Commons Library Briefing paper from 2017.

Some in the sector are hopeful growth in the market is encouraged by the government to help meet new build housing targets.

Andrew Baddeley-Chappell, chief executive of the National Custom and Self Build Association says: “Custom and self-build has the potential to help the government reach its targets of creating 300,000 homes per year by the mid 2020s.”

A survey commissioned by the Building Societies Association (BSA), published in October 2011, suggested 53 per cent of people in the UK would consider building their own home given the opportunity.

Around 100,000 people subscribe to one of the main plot-finding websites.