The new products offer guaranteed stage payments, based on the cost of each stage of work, rather than the level of available funds being dependent on a lender’s valuation during the build.
Both products are ERC-free with an initial 2-year rate linked to SVR with the first having no product fee and an initial pay rate of 5.50%.
The second has a completion fee of £1,499 with an initial pay rate of 4.45%.
Enquiries can be submitted to BuildLoan through its Unicus online platform, which also provides a wealth of useful information for brokers.
Chris Martin, head of product development and underwriting at BuildLoan, said: “These products tick many boxes for self-builders, with guaranteed stage payments available up-front to ensure that clients get their money when they need it during the build.
“The low fee structure is highly attractive and having no ERCs provides a lot of flexibility when the build has been completed.
Claire Askham, head of mortgage sales at Buckinghamshire Building Society, added: “Self and custom build is an important market for us and we have worked hard with BuildLoan to develop these products with features that self-builders really need.
“The peace of mind of having pre-agreed up-front stage payments gives clients huge reassurance and confidence that they can finance their build successfully.”
