BuildLoan has teamed up with the Buckinghamshire Building Society to unveil a new custom and self-build mortgage product.

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 the 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.”