According to the lender, up to 90% of the cost of each stage of the project can be provided before the work starts and each release is specifically agreed as part of the mortgage application. With no valuations during the build, this means that clients are guaranteed to get the money they need to fund the next stage of the build, without any risk of down-valuation.
BuildLoan now offers 26 exclusive advance-stage payment products funded by its lender panel.
Chris Martin, (pictured) head of product development and lender relationships at BuildLoan, said: “Most self-build products provide a lump sum of funds to the borrower after each stage of work has been completed. The reality when building your own home is that bills have to be paid every day, so for many people, it’s not feasible to wait for the work to be completed to get the money from their lender and have the money available up-front to pay for upcoming work is vital.
“We are also seeing more and more people who want to reduce the environmental impact of both building and living in their home and who want to build with a carbon-friendly offsite manufactured system to achieve this. These systems usually need large up-front payments in the early part of the build process. Our advance stage payment products can provide the funding for this even before work on-site has started. BuildLoan continues to be the only provider of true advance stage payment self-build products.”
Julie Bourne, intermediary sales manager at Hinckley & Rugby Building Society, adds: “Self and Custom Build is an important part of our lending strategy and the launch of our advance stage payment range reflects this at a time when some lenders have withdrawn from the self-build market.
“We know that having money available at the right time to cover upcoming build costs is really important for self-builders. Our new products mean that borrowers can build with as little as 10% of their land and build costs and with funds provided in advance, building a home becomes a much more realistic option for more people."
