All of the new range offers funding up to £600,000 and up to 80% of the client’s project costs along with the option of interest only during the build.
BuildLoan and Nottingham Building Society have launched three cost-based self- and custom-build mortgage products.
All of the new range offers funding up to £600,000 and up to 80% of the client’s project costs, along with the option of interest only during the build.
The first product has an initial pay rate of 3.80% for 2-years, the completion fee is £1,499 and there is no application fee. Meanwhile, the second product has an initial pay rate of 5.00%, and it has no completion fee or application fee.
The third product is a fixed rate with an initial pay rate of 3.74% until 31 May 2023, after which it will revert to 4.24%. The completion fee is £1,499, and there is no application fee.
All of the products offer funds released in stages based purely on the cost of each element of the work. Stage releases are agreed at application stage and as there are no valuations during the build - the pre-agreed stages are then guaranteed to be released once each element of work is complete.
Chris Martin, head of product development and underwriting at BuildLoan, said: “These products take away the cashflow risk associated with some self- and custom-build mortgage deals which base the stage releases on the value of the site – agreeing the releases based purely on cost takes away this risk and gives clients a huge amount of confidence that they can press on with their build.”
Nikki Warren-Dean, head of intermediary sales at The Nottingham, added: “Our lending is now linked to the cost of each stage of work, with a guaranteed stage release pattern agreed at application.
“This cuts out the need for interim valuations, taking away the risk of a customer potentially not getting the funds they expected.
“There can be no underestimating the peace of mind confirmed cashflow can bring – in fact it can be key to a successful and efficient self-build project.”
