BuildLoan and Loughborough launch self-build products
BuildLoan and Loughborough Building Society have launched two 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 2-year discount mortgage is 4.39% and the 2-year arrears stage release product is also ERC-free and set at 4.25%, with a fee of £999.
Clients can borrow up to 80% of their land and build costs and up to a maximum end loan to value of 80%. 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.
“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.
“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.”
Ashley Pearson, business development manager at Loughborough Building Society, added: “We’ve taken the time to work together with BuildLoan to develop our products and policy to make sure they reflect what self-builders need to ensure their project is a success.
“We are fully committed to supporting this very exciting sector.”