BuildLoan has launched a new range of products with the Darlington Building Society, offering mortgages of up to £1.5m on self-built homes.
The bespoke mortgage distributor says the partnership will offer clients who want to build their own property, either independently or on one of the many self-build sites, up to 85% of their project costs.
The range offers discounted rates until November 2024, with a 0.5% fulfillment fee.
He adds that loans are available with additional funds released upon completion of each stage of work or before each stage begins.
All BuildLoan products offer guaranteed milestone payments during construction tied to the cost of each stage of construction, so customers have the funds they need at every stage of construction.
He indicated that there are no assessments during construction and that the staged releases model is agreed upon at the application stage.
Chris Martin, Head of Product Development and Underwriting at BuildLoan, says, “We are seeing more and more customers looking to build higher quality homes to meet their specific needs and as a result need to borrow more. These new offers complete our already wide range of products.
“We know that ensuring funds will be available at the right time during construction is extremely important to self-builders and these products provide that convenience, with pre-agreed stage releases and no assessment during construction.
“Prepayment options are a fantastic solution for customers with a small pot of their own money, especially if they are building using an offsite manufactured product that requires a larger upfront payment.
Louise Thorpe, Director of Distribution for the Darlington Building Society, adds: “The self-contained and custom build market is growing and is an integral part of our lending strategy.
“We developed these products with BuildLoan to give even more potential self-builders the opportunity to build the home they want. All of our products offer the assurance of a pre-agreed model of milestone releases linked to the cost of each element of the construction, without any assessment during the construction works.
“Brokers can therefore be confident that they are recommending a product to their self-build client that has been designed with their key needs in mind. »