The Nottingham has adapted its mortgage proposition by moving to a cost-based self-build and custom-build lending approach through specialist distributor, BuildLoan.

The building society, which distributes its self-build and custom-build mortgages exclusively through BuildLoan, will now provide funding based purely on the costs of each element of a client’s build.

This move would take away the requirement for interim valuations, lessening the risk of a customer potentially not getting the funds they expected partway through the build.

As well as this cgange, the Nottingham has also announced it is revamping its self-build range, having reduced the rate of one discount product, added a two-year fee-free discount offering and introduced a new 16-month fixed rate product.

The Nottingham’s Head of Intermediary Sales, Nikki Warren-Dean, said: “This is a really positive step in the reinvention of our mortgage lending. We know that having the confidence that money will be available exactly when needed as work progresses is hugely important for self and custom builders.

“Our lending is now linked to the cost of each stage of work, with a guaranteed stage release pattern agreed at application. This cuts out the need for interim valuations, taking away the risk of a customer potentially not getting the funds they expected.

“Lending based on build costs alone substantially reduces the risk of cashflow issues bringing a project to a standstill because contractors can’t be paid, or materials purchased.”

BuildLoan head of product development and underwriting, Chris Martin, added: “These products meet one of the key needs of a self or custom builder – the peace of mind that they are guaranteed to get the funds they need, at the right time, to get their build completed successfully.”

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