BuildLoan’s Melton Mowbray Building Society advance stage payment self build and renovation mortgage product had only been available for projects within a 70-mile radius of Melton Mowbray.
With a shifting housing market, self build is becoming a more popular option for getting a new home in the current climate and is set for significant growth. However, brokers will be aware that there are now fewer lenders currently offering self build mortgages. Those that do are increasingly lending through BuildLoan’s parent, BuildStore, as a specialist with over a decade of experience.
Clients can borrow up to 75% of the purchase price of the land or property, and up to 75% of construction costs (subject to a maximum end LTV of 60%), which are released in stages, at the start of each phase of construction.
This is crucial to help clients with their cashflow throughout the project; allowing them to manage their budget more effectively, pay tradesmen and purchase the necessary materials at the right stage. For many self builders, a positive cashflow can also mean the difference between completing on time, and facing significant delays.
The Melton’s chief executive, Martin Reason, commented: “Entering the self build market has been a successful initiative for the Melton, and we are delighted to be able to extend our lending to self builders across England and Wales.
“We believe the self build market is a prime opportunity to support local communities - it makes a valuable contribution in the area the Society operates, in terms of providing jobs, and providing local people an alternative way to get the home they want, at a more affordable price.”
Raymond Connor, chief executive of BuildStore Financial Services, added: “The Melton already offers two exceptional products to the self build market, so BuildLoan is delighted to be able to extend our offer to intermediaries, and help them serve this growing market.
“With the Melton and our other lending partners, we will continue to develop and enhance our product offering to meet brokers’ needs and maintain our position as the market leaders.”
