BuildLoan has introduced a new ERC-free variable rate mortgage to its offering.

The new ERC-free mortgage is funded by the Stafford Railway Building Society and is exclusively available from BuildLoan for intermediaries for customers in England, Scotland and Wales.

With a pay rate of 3.59% for two years, the product is available for loans up to £600,000. Clients can borrow up to 85% of their project costs and up to 75% of the value of the completed property.

The product provides guaranteed stage payments during their build, based on the client’s build costs and irrespective of any valuations.

Chris Martin, BuildLoan’s head of product development and underwriting, said: “We know that many self-builders want a mortgage product with a competitive rate during the build period and the flexibility to review their mortgage product as soon as they have completed their build.

“This ERC-free BuildLoan exclusive product funded by Stafford Railway Building Society offers a great combination of these important features.”

Rob Hassell, head of product strategy and communications at the Stafford Railway, added: “We have identified a gap in the market for a low rate, ERC-free product for self-builders and have designed this product with BuildLoan to help even more self-builders finance their dream home.”