The Melton Building Society has changed its criteria to allow lending on modern methods of construction (MMC) properties.
The society will now consider Huf Haus, SIPs, Timber Frame, Light Gauge Metal Framing and CLT Panels as construction types for its standard self-build mortgages.
Dan Atkinson, head of sales and marketing, the Melton Building Society, said: “Modern methods of construction are transforming the way new homes are being built and we recognise the need to enhance our criteria to support this,”
“Self-build and renovation offer choice and diversity to home buyers and this is particularly important where supply of property falls short of demand.
“The Melton has long pioneered the development of self-build finance and this latest change to our lending criteria will give self-builders more flexibility with their build projects.”
Craig Hall, new build manager at Legal & General Mortgage Club, said: “It is great to see further lender support for modern methods of construction, as the government has set a target of delivering 300,000 new homes per year by the mid 2020’s.
“MMC, self and custom build are forming an important part of the solution to increasing supply.”
The Melton is one of just a few lenders who will lend to purchase land and the society’s range of self-build products includes a self-build advance mortgage which provides stage payments in advance of each build stage.
It also provides an eco mortgage with a special discounted rate that recognises investment in energy efficient features and a family assist self-build product, helping younger borrowers with no deposit to build their own home.