BuildLoan has partnered with Nottingham Building Society to launch two loans for self and custom-build properties.

The development and bridging finance firm for brokers says both products are offered at two-year discounted rates based on arrears stage payments available on an interest-only basis during the build. The deals are available through the mutual.

They have a maximum loan to value of 80% with land and build costs also up to 80%, with no early repayment charges.

The first product has an initial pay rate of 3.99% for two years, which is a 1.75% discount from The Nottingham’s variable mortgage rate, reverting to 4.24%. The completion fee is £1,499, with no application fee.

The second product has an initial pay rate of 4.14%, representing a 1.60% discount, reverting to 4.24%. It has a completion fee of £499, with no application fee.

Loans range from £50,000 to £600,000, or a maximum of £500,000 if interest-only is taken for the whole term of the mortgage.

Both products come with no lender re-valuation fees and no lender-stage release fees or telegraphic transfer fees.

The deals are open to professional contractors and employees with high amounts of commission.

Lending can be based on the latest year’s income in certain circumstances, for self-employed clients.

BuildLoan head of product development and underwriting Chris Martin says: “These early repayment charges-free products provide flexibility to clients and complement The Nottingham’s comprehensive lending policy.

“The products are available to the increasing number of self and custom builders using more efficient modern methods of construction to build their home.”

The Nottingham head of intermediaries Nikki Warren-Dean adds: “Self and custom build is an increasingly important part of the new-build housing sector.

“We have worked with BuildLoan to create a product range and lending policy to meet the needs of a wide range of customer circumstances.”