Mansfield Building Society has entered the self-build lending market by partnering with specialist BuildStore Mortgage Services.
The Mansfield will now consider self-builders, renovators and those hoping to work on conversion projects for residential purposes in England and Wales.
Applicants will be able to borrow up to 85% loan-to-cost initially, and 85% loan-to-value overall.
Following the initial release for the purchase of land, up to £75,000 can be released for each subsequent stage of the project.
BuildStore secured a similar arrangement with Nottingham Building Society last month.
Raymond Connor, chief executive of BuildStore, said: “Our partnership with The Mansfield Building Society demonstrates the growing commitment of lenders to the self-build housing market.
“This reflects both the government’s continued support of the sector and increased public awareness of self-build, which is at an all-time high.”
“As the market continues to grow, the demand for tailored financial products will steadily increase, too, and prospective self-builders will naturally turn to specialists in order to secure the right type of funding.
“Our partnership with The Mansfield will enable more self-builders complete a successful project using the right kind of finance.”
Gev Lynott, chief executive at The Mansfield said: “We have worked with BuildStore to support self-build for a number of years now and I am pleased that we have been able to extend the lending options we offer.
“By providing mortgage finance in advance of each stage of the build process, our approach should encourage and enable more people to consider self-building their dream home.
“We are also working closely with BuildStore to help encourage a greater take up of custom build, where a specialist ‘enabling’ developer is engaged to provide serviced building plots and assist in designing and developing a personalised new home for individuals.”
Lynott added: “Products like The Mansfield’s Accelerator mortgage and modern methods of construction now make the prospect of self-building a reality rather than a distant dream.
“We’re proud to be further supporting the self-build industry with BuildStore given the current housing need.
“With more choice becoming available, it’s important that local and central government play their part in supporting growth of these increasingly popular schemes.”