BuildLoan has agreed a revised lending policy with Chorley Building Society, which includes a return to its pre-pandemic income criteria for employed applicants.

The change means that up to 100% of average bonuses, overtime or commission can be taken into account where the payments have been consistently received.

Chorley’s self and custom build products are available exclusively through BuildLoan, which provides loans of up to £1m and up to 85% of clients’ project costs.

All BuildLoan products offer stage releases as the client’s build progresses, with the pattern of stage payments agreed at application stage linked to the cost of each stage. Stage releases aren’t subject to site valuations during the build, meaning clients have the peace of mind that they will receive the expected funds.

BuildLoan head of product development and underwriting, Chris Martin, commented: “Many potential self builders have been restricted by lenders’ approach to variable income through the pandemic.

“This positive change means that more people who regularly receive income over and above their basic salary can have the opportunity to borrow what they need to build a home designed specifically to their own needs.”

Chorley’s head of lending, Liz Pearson, added: “Many employed clients’ incomes include a large proportion of non-guaranteed income, and we know that our experienced self build underwriting team - working alongside BuildLoan - have the skills to make sure applicants can afford the mortgage they ask for.

“Unlike some self build mortgages, all our products available through BuildLoan offer the reassurance that clients will receive the funds they need at the right time during their build.  This gives them confidence that materials can be bought and contractors paid at the right time to keep the build moving.”

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