BuildLoan has announced a new range of self and custom build mortgage products in conjunction with Bath Building Society.

The four new products will replace the society’s existing range with initial rates 0.25% below the previous equivalent products, reducing its lowest rate from 3.90% to 3.65%.

All products have advance stage payments, meaning stage releases throughout the build are agreed at the outset, linked to the costs of each build stage and not subject to valuation by the lender during the build.

Funds will be released before each stage of work which provides an excellent solution for self-builders with fewer funds and those using carbon-friendly construction methods such as timber frame, where costs tend to be more weighted towards the start of the build. The new range also provides up to 95% on land and build costs.

BuildLoan head of product development and underwriting, Chris Martin, said: “These new products offer great features for self-builders, particularly those needing to borrow a higher proportion of their build costs or needing funds up-front to pay for a build system such as a timber frame.

“The stage payments are agreed at application stage based on build costs which takes away the uncertainty of products where stage releases during the build are subject to a valuation of the site by the lender.”

Bath Building Society mortgage sales manager, Ben Hutchings, commented: “We recognise that cashflow is vital to self-builders which is why all of our products offer up-front guaranteed stage payments linked to the cost of each element of the building project. These features are incredibly important to clients to help them complete their build successfully within their planned timescale.”

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