Mortgage intermediaries can now access a new advance stage payment product from Loughborough Building Society for their self and custom build clients.
The new ‘Accelerator’ product is exclusively available from BuildLoan for customers in England and Wales.
It offers a 2-year discount of 0.84% off the society’s standard variable mortgage rate giving a current pay rate of 4.50%.
The product provides up to 80% on land and build costs, with a maximum loan to value of 80% and a maximum loan amount of £500,000.
Fees and ERCs are applicable.
Chris Martin, technical manager at BuildLoan, said: “We’re delighted Loughborough Building Society has decided to add an advance stage payment mortgage to its product range.
“Advance stage payments dramatically improve cashflow for self builders avoiding potential delays onsite, with the money to pay their bills on time.
“The product is also cost based which means after release of the initial stage, further releases are based on the borrower’s project costs avoiding any delays caused by a valuer having to visit the site before mortgage funds are released and reduces the risk of delays to the project as a result of down-valuations.”
Ashley Pearson, business development manager at The Loughborough, added: “Loughborough Building Society has established a fantastic relationship with BuildLoan over the last eight years.
“We’re pleased to be able to support more self and custom builders with the introduction of this new advance stage payment mortgage and strengthen our commitment to the sector and providing finance for people to design and build their own homes.”