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

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

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 are 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 provides up to 95 per cent on land and build costs.  Example products include:

• 2-year discount rate of 3.65 per cent (SVR – 1.25 per cent) with a maximum loan to value of 80 per cent
• 2-year discount rate of 3.85 per cent (SVR – 1.05 per cent) with a maximum loan to value of 85 per cent

Chris Martin, head of product development and underwriting at BuildLoan, 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.

Ben Hutchings, mortgage sales manager at bath building society, 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.”