Intermediaries can now access a new advance stage payment product for their self-build and custom-build clients through BuildLoan.
This new Accelerator product is provided by Loughborough Building Society and is exclusively available via BuildLoan.
The deal offers a two-year discount of 0.84 per cent off the Loughborough’s standard variable mortgage rate. This gives a current pay rate of 4.5 per cent.
The product providers up to 80 per cent of land and build costs, with a maximum LTV of 80 per cent and a maximum loan amount of £500,000. Fees and early repayment charges are applicable and the product is only available to borrowers in England and Wales.
BuildLoan technical manager Chris Martin says: “We’re delighted Loughborough Building Society has decided to add an advance stage payment mortgage to its product range.
“Advance stage payments dramatically improve cashflow for self builders avoiding potential delays onsite, with the money to pay their bills on time.
“The product is also cost based which means after release of the initial stage, further releases are based on the borrower’s project costs avoiding delays caused by a valuer having to visit the site before mortgage funds are released. This reduces the risk of delays to the project as a result of down-valuations.”
Original Article from Mortgage Strategy 06/01/2021