The deal is designed to help people building their own homes access finance in phases coinciding with building stages.
Funds are released in five stages: land purchase, wall plate, roofed in, plastered out and completed. The society will release up to 75% of the value for each.
Phil Coombes, head of intermediary sales at Leeds Building Society, said: “It is often very difficult to predict and budget exactly for five stages. Purchasing the land will usually be the biggest expense and we will lend up to 60% of the value with outline planning permission and 75% with full planning consent. The flexibility of our self-build product means the process is made much easier.
“Furthermore, we will lend up to 75% LTV on the completed property (stage 5), so customers only have to find 25% of the value throughout the process.”
Funds are released following an inspection by a qualified surveyor or valuer and sent electronically. Consequently, borrowers receive the money quickly when required and they do not pay any interest until they have received the funds.
