Key Features of BuildLoan Self Build Mortgage

High borrowing percentages:

• Your client can borrow up to:
  95% of the lower of the cost or value of the land or building they want to renovate or improve.
• 95% of the cost of the build

This means that only a small deposit is required so a client is more likely to be able to remain in their current house and not need to move into temporary accommodation or a caravan on site.

Receive stage payments during the build in advance:

This is an extremely important feature and one which can mean the difference between a project going ahead or not. Your client works out how much he needs at each stage of the build (BuildStore will give assistance here by providing a detailed costing form for completion) and that money is released to your client at the start of each stage rather than at the end of each stage which is the common way of releasing money on self build projects by lenders not using the BuildStore advance stage payment scheme.

Buy land with outline planning permission:

Many lenders insist that land has detailed planning consent before they will lend. With BuildLoan, your client can borrow to purchase land which has only outline planning consent. This makes buying land at auction a possibility and increases the speed at which a client can acquire a plot.

Positive cashflow during the build:

By giving your client money at the start of each stage we are making him a cash purchaser of materials and labour. This not only lets him negotiate best prices but also speeds up the build as he is not subject to delays in receiving money which can happen when interim valuations are required.

Remain in current house during the build:

Most clients would prefer to remain in their current house while building their new one but often they have to sell up to pay for the land and build because they cannot find a lender who will advance them sufficient funds to pay for the project. BuildLoan has been designed to enable your client to remain in their current home by providing high borrowing percentages, high borrowing amounts and positive cashflow during the build. And, if your client has a current mortgage, that can run alongside the BuildLoan Self Build Mortgage during the build. If there is a current mortgage, the lender treats it like a regular commitment. (see Product Profiles for details).

No interim valuations:

Once the stage payments have been agreed with your client, this is the amount that he will get during the build. The amounts are not subject to later confirmation by interim valuations. To trigger the first payment for the build your client will have to provide detailed planning permission and Building Regulations and then subsequent payments are released once the previous stage has been certified as complete by a professional such as an Architect or Architectural Technologist or on receipt of a stage completion certificate from the NHBC Solo Inspector or from a NHBC registered builder. And once agreed these payments are guaranteed – they are not subject to the interim valuations carried out by other lender

Available for a wide range of projects:

In addition to self build, BuildLoan can also be used if your client is buying a house to knock down and replace, buying a building such as a barn to renovate or convert or even buying a house to extend or make improvements to.