Stage Payment Types
Valuation Based Mortgages
A valuation based mortgage releases funds upfront to purchase your plot, and then after each stage of works are complete. With BuildStore, you can borrow up to 85% of your project costs (compared to 75% for most other lenders), and your stage releases are reliant on a valuation taking place which shows an uplift in value throughout the build.
This can cause problems because there is a risk of the property being devalued during the build - particularly during the foundations stage. Also, most lenders will hold a retention of 5-10% of your loan until the build is complete – which is tricky in the latter build stages where you have electricians, joiners & plumbers onsite who need paid daily in cash.
Having said that, if you have sufficient savings or already own your plot and can remortgage to provide the funds to start works, valuation based stage payments could work for you.
- Borrow up to 85% of your plot and build costs
- Stage payments in arrears and subject to valuation
- Interest only payments available during the build
- You only pay interest on funds as they're drawn down
- Access to a range of exclusive mortgages and lenders