BuildLoan has announced the launch of eight new products for self and custom builders funded by the Furness Building Society.
The new products replace the society’s existing range with initial rates between 0.2% and 0.24% below the previous equivalent products, reducing its lowest rate from 3.79% to 3.59%.
All of the products offered by Furness – available exclusively through BuildLoan – provide self and custom builders with a pre-agreed schedule of funding throughout the build designed to meet customers’ build costs as they arise. With these cost based mortgages, Furness said that funds are guaranteed, and that there is no risk of down valuations reducing the amount received by the borrower.
The range offers up to 85% of build costs and up to 80% of the value of the completed property, with a maximum loan of £750,000, and funds are available in arrears or in advance of each stage of work. If the client completes the build within any ERC period, they can move straight to a residential rate with Furness without paying the ERC.
BuildLoan head of product development and underwriting, Chris Martin, commented: “We offer an extensive range of products through Furness and these reduced rates offer self builders even greater value.
“All of the products provide guaranteed stage payments linked purely to the client's build costs providing certainty to self builders that they will have the money they need when it's needed.
“The option to move to a lower rate on completion of the build without paying any ERC is a really attractive feature, which could save a lot in terms of mortgage payments if the client finishes the property quickly.”
Furness head of intermediary mortgages, Alasdair McDonald, added: “We know that cashflow is vital to self builders and our products have been carefully designed with BuildLoan to match the funds provided to the client with their build costs.
“This removes the risk of their build not progressing because they don’t have the money available to pay contractors or buy materials.”
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