Employed applicants with income over basic salary can borrow more
Self and custom build specialist BuildLoan has agreed to a revised lending policy with Chorley Building Society, which includes a return to a pre-COVID approach to non-guaranteed income for employed applicants.
The lender’s self and custom build products are available exclusively through BuildLoan.
The changes mean that up to 100% of average bonuses, overtime or commission can be taken into account where the payments have been consistently received.
“Many potential self-builders have been restricted by lenders’ approach to variable income through the pandemic,” Chris Martin, head of product development and underwriting at BuildLoan, said.
“This positive change means that more people who regularly receive income over and above their basic salary can have the opportunity to borrow what they need to build a home designed specifically to their own needs,” he explained.
Read more: BuildLoan introduces new self-build mortgage.
“Unlike some self-build mortgages, all our products available through BuildLoan offer the reassurance that clients will receive the funds they need at the right time during their build. This gives them confidence that materials can be bought, and contractors paid at the right time to keep the build moving,” Liz Pearson, head of lending at Chorley Building Society, said.
BuildLoan offers a range of products funded by Chorley, providing loans of up to £1 million and up to 85% of clients’ project costs.
All BuildLoan products offer stage releases as the client’s build progresses, with the pattern of stage payments agreed at application stage. Stage releases aren’t subject to site valuations during the build so clients can be confident that they will receive the funds they are expecting.
