Buildloan announce improved self build mortgage

Buildloan, the mortgage packaging arm of Buildstore have announced improvements to one of their most popular self build mortgage schemes.

The scheme, which is run in association with The Mortgage Business (TMB) who themselves are part of the HBOS group, is a Self Certified Lifetime Tracker mortgage for self builders and renovators providing advance stage payment lending to £500,000. Previously the maximum loan was capped at £350,000.

The product is priced at 2.44% over the Bank of England base rate for the life of the mortgage, giving a current pay rate of 7.44%. An early repayment Charge is payable at 1% of the amount redeemed prior to the 30th September 2011. There is an arrangement fee of £995 for loans up to £350,000, which increases to £1,995 for loans between £350,001 and £500,000.

The Buildloan products have always had a welcome place in the market, being unique in providing funding when starting each stage of the build rather than at the completion of each stage. With lending of up to 95% of the cost of aquiring the land, and 95% of the cost of the build (in certain circumstances), the Buildloan/TMB product has been instrumental in allowing self building to become an option for many who otherwise wouldn’t have had the available cash flow.