BuildLoan has created two new low rate, low fee products funded by Vernon Building Society.
The discount rate products for self and custom build, renovations, conversions and home improvements are exclusively available from BuildLoan for intermediaries to offer to their clients in England and Wales.
Providing up to 85% of the client’s land and build costs, these products offer guaranteed stage payments based on project costs, either in arrears or in advance. Rates are from 3.99% and repayments can be interest-only throughout the duration of the build to further reduce costs.
Chris Martin, Head of Product Development and Underwriting at BuildLoan, said: “We’ve worked closely with the team at Vernon to develop these new products, which provide excellent value, while also meeting the needs of increasing numbers of self and custom builders who want to use more modern and efficient building methods.
“Funds are released based on actual build costs rather than relying on site value during the build and the advance option means that up to 85% of the cost of each stage of work can be made available up-front. These features mean the client will get the funds they are expecting during the build which reduces the risk of delays due to running out of funds.”
Brendan Crowshaw, Head of Mortgage & Savings Distribution at Vernon Building Society, commented: “At Vernon, we recognise the growing self and custom build market and the sector is an integral part of our lending strategy. We have designed these products with Buildloan to provide the features that we know are important to self builders.”