BuildLoan and Buckinghamshire Building Society have launched a custom and self-build mortgage product in partnership.
The arrears stage payment product offers a discount of 0.95% from Buckinghamshire’s standard variable rate for two years, giving an initial pay rate of 3.79% with a £1,499 completion fee.
This product offers stage payments of up to 85% of build costs on completion of each stage of work. The releases are linked to build costs rather than a site valuation, removing the risk of the client not receiving the funds they are expecting.
Funds are available for self and custom-build projects, including barn conversions.
Chris Martin, head of product development and underwriting at BuildLoan, said: “This product enables clients to get agreement up-front regarding the amount of funds that will be released at each stage of their project.
“This gives them a huge amount of peace of mind that the funds they receive aren’t put at risk by a down valuation during the build.
“This is a really important benefit to self-builders to ensure their project progresses as they expect.”
Claire Askham, key account manager at Buckinghamshire Building Society, added: “We are committed to supporting the ever-changing self-build sector through our range of mortgage products offered exclusively via BuildLoan.
“We believe this arrears product shows our commitment to support the self-build market and enhances the relationship we have with BuildLoan.”