It also increases income multiples for higher income self-builders
Mortgage distributor BuildLoan has launched two products offering larger loans, expanding its range of self- and custom-build mortgages.
The new deals offer loans up to £1 million and up to five times the applicant’s income for those earning above £100,000. Loans of up to five times the household income are available to both employed and self-employed applicants. The loans will be funded by Furness Building Society.
Like all BuildLoan products, funds are released in stages through the build, with stage releases being linked directly to the cost of each stage of work. There are no valuations during the build, and each release of funds is pre-agreed during the mortgage application and detailed in the mortgage offer.
“We know that many people who want more control in how they earn their living by running their own business also want more control over the home they live in,” Chris Martin (pictured), head of product development and lender relationships at BuildLoan, commented. “These new products offer the same unique features as the rest of our self- and custom-build mortgages, along with increased borrowing capacity for higher earning self-employed and employed clients.”
Alasdair McDonald, head of intermediaries at Furness Building Society, added that they have worked with BuildLoan to develop these products to recognise that applicants with higher incomes will often have more disposable income.
“We have a lot of experience lending to self-employed clients, which means that even with some uncertainty around interest rates, we can understand where it’s reasonable and responsible to lend that bit more to help the client to achieve their ambition of building their dream home,” McDonald stated.
