BuildLoan and Loughborough Launch Cost-Based Self-Build Products
BuildLoan and Loughborough Building Society have created two competitive cost-based self-build mortgage products offering a choice of advance or arrears stage payments.
All products within Loughborough’s self-build range are free of early repayment charges (ERCs) and are available to fund self-build projects using a variety of construction types. This includes offsite manufactured systems and a range of cladding and roofing options, as well as traditional masonry construction.
The ERC-free advance stage release two-year discount mortgage is 4.39 per cent, which is 0.95 per cent less than Loughborough’s standard variable rate (SVR) and has a £999 fee.
The two-year arrears stage release product is also ERC-free and set at 4.25 per cent, a discount of 1.09 per cent off SVR, with a fee of £999.
Clients can borrow up to 80 per cent of their land and build costs and up to a maximum end loan to value of 80 per cent. Loans range between £50,000 and £500,000.
Chris Martin, head of product development and underwriting at BuildLoan, said: “With these new products, Loughborough’s range of mortgages – available exclusively through BuildLoan – meet a really wide range of customer needs.
He added: “An increasing number of self-builders are using construction methods such as timber frame where a larger proportion of the build costs are incurred earlier in the build. The advance stage payment mortgage is a fantastic solution to this as it gives the client money up-front to pay for the timber frame before it’s installed on site.
He concluded: “Because funds are released on these products based on each stage of build costs, rather than being linked to a site valuation, the risk of down valuation is also removed. This gives the clients huge peace of mind that they will receive funds when they are expecting them.”