Self and custom-build finance specialist BuildLoan has launched a new advanced stage payment product with Chorley Building Society, designed to protect clients against the risk of conservative site valuations.

The new deal is specifically designed to overcome the risk of a down-valuation disrupting the clients’ cashflow during the build. The stage releases through the build are agreed during the initial mortgage application process and are not reliant on valuations during the build. This means clients know at the start of the process that they will have the funds they need at the right time.

The new Chorley Building Society product offers clients the opportunity to have each stage of funds linked directly to the cost of each element of the build and released to the client before they start the work.

Self and custom builders can borrow up to 85% of their land and build costs and up to 80% of the final value of their new home.

Chris Martin, head of product development and lender relationships at BuildLoan, said: “Our cost-based products really come into their own at a time when we expect to see downward pressure on property prices, which may lead to valuers taking a cautious approach to site values.

“The last thing a self-builder needs is for their cashflow to be disrupted by a low site valuation, which means they don’t get the money they need to progress their build. This new product provides a perfect solution – the funds are pre-agreed so the client knows exactly what they will get at each stage of their project.”

Stuart Bryce, head of business development at Chorley Building Society, added: “We are committed to supporting the self and custom-build sector as it provides an important contribution to generating the much-needed increase in construction of new homes.

“We’ve designed these products with BuildLoan to address the key issues that self-builders face. Providing funds up-front at each stage of the build provides a real boost to cashflow and enables many clients to build where otherwise it would have been impossible.

“With no need for any valuations during the build, the product also removes the doubt inherent in some self-build products which rely on the property being valued at each stage to determine how much money can be released to the client.”