Mortgage intermediaries with self-build clients can now access a new product from Hinckley & Rugby Building Society through BuildLoan.
The higher loan-to-value (LTV) mortgage from the society is a two-year discount product charging an initial 4.99% interest.
The money will be advanced in five stages, with Hinckley lending up to 85% of the land’s value and then up to 85% of the cost of the build. The maximum LTV of the completed home is 75%.
The partnership comes with Hinckley’s experience from six years of self-build ending to a wider field of intermediaries and their clients.
Carolyn Thornley-Yates, head of sales and marketing at Hinckley & Rugby, says: “Partnering with BuildLoan will enable us to better serve the intermediaries advising the growing number of self-builders, many of whom need higher LTV borrowing to create the home they desire.”
“They can borrow up to £500,000, we’ll pay the cost of an additional security fee and we will apply our manual underwriting to carefully assess each application, working with intermediaries to fully understand all aspects of the case.”
Raymond Connor, BuildLoan chief executive officer, adds: “I am delighted that Hinckley & Rugby Building Society has joined our lender panel with the launch of a new mortgage product for self-build. Notwithstanding the current political unrest, the self and custom build sector is growing and we believe 2020 will see unprecedented demand.”