BuildLoan partners with the Loughborough for new self-build products

Published on

BuildLoan and Loughborough Building Society have introduced two cost-based self-build mortgage products offering a choice of advance or arrears stage payments.

All products within Loughborough’s self-build range are free of early repayment charges (ERCs) and are available to fund self-build projects using a variety of construction types. This includes offsite manufactured systems and a range of cladding and roofing options, as well as traditional masonry construction.

The ERC-free advance stage release two-year discount mortgage is 4.39%, which is 0.95% less than Loughborough’s standard variable rate (SVR) and has a £999 fee.

The two-year arrears stage release product is also ERC-free and set at 4.25%, a discount of 1.09% off SVR, with a fee of £999.

Clients can borrow up to 80% of their land and build costs and up to a maximum end loan to value of 80%. Loans range between £50,000 and £500,000.

Chris Martin, head of product development and underwriting at BuildLoan, said: “With these new products, Loughborough’s range of mortgages – available exclusively through BuildLoan – meet a really wide range of customer needs.

“An increasing number of self-builders are using construction methods such as timber frame where a larger proportion of the build costs are incurred earlier in the build. The advance stage payment mortgage is a fantastic solution to this as it gives the client money up-front to pay for the timber frame before it’s installed on site.

“Because funds are released on these products based on each stage of build costs, rather than being linked to a site valuation, the risk of down valuation is also removed. This gives the clients huge peace of mind that they will receive funds when they are expecting them.”

Ashley Pearson, business development manager at the Loughborough Building Society, added: “We’ve taken the time to work together with BuildLoan to develop our products and policy to make sure they reflect what self-builders need to ensure their project is a success. We are fully committed to supporting this very exciting sector.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...