With over 170 years of lending under our belts, helping put roofs over people’s heads is part of our DNA. And we’re always looking at new ways to help people secure their dream property.

That’s why we’ve evolved our mortgage proposition with the move to cost-based self-build and custom-build lending through specialist distributor BuildLoan. 

The move means we will now provide funding based purely on the costs of each element of a client’s build. This takes away the requirement for interim valuations, and with that comes a big reduction in risk of a customer potentially not getting the funds they expected partway through the build.


Minimising the risk of cashflow problems

As Nikki Warren-Dean, our Head of Intermediary Sales, explained – this is a great development for self-build customers as it will give them the confidence that money will be available exactly when needed as work progresses. 

“Our lending is now linked to the cost of each stage of work, with a guaranteed stage release pattern agreed at application. This cuts out the need for interim valuations, taking away the risk of a customer potentially not getting the funds they expected. 

“Lending based on build costs alone substantially reduces the risk of cashflow issues bringing a project to a standstill because contractors can’t be paid, or materials purchased. 

“There can be no underestimating the peace of mind confirmed cashflow can bring – in fact it can be key to a successful and efficient self-build project.” 


Revamping our self-build range

Alongside the introduction of cost-based lending, we’ve also revamped our self-build range – reducing the rate of one discount product, adding a two-year fee-free discount offering and introducing a new 16-month fixed rate product.
  • Two-year ERC-free discount product with £1,499 fee is now 3.80% (was 3.99%)
  • Two-year ERC-free discount product priced at 5.00% is now fee-free (was £499)
  • New 16-month fixed product has been launched at 3.74% (£1,499 fee)

Self-build now a viable option for many

Nikki added: “We have a long and successful history of helping people find homes for themselves and their families and are continuing with that ethos by supporting people for whom self-build is their preferred option. 

“Things such as Right to Build legislation and the Bacon Review have led to self and custom-build being much more talked about these days than they ever were and increasingly being considered by many as viable options. 

“We see bringing our lending experience to the table as an added positive – twinned with our traditional values and flexible underwriting.” 

Supporting those who want to build their own home

Nikki added: “The transition to cost-based lending will see our strong working relationship with BuildLoan continue to develop, as we share a determination to support those who want to build their own home. 

“With BuildLoan’s understanding of the market and risk mitigation, including experienced underwriters, a detailed build cost assessment process, access to indemnity and build-out insurance and post-completion build monitoring and support added to the mix, we’re in a really positive position to help those considering a self or custom build.” 

Chris Martin, Head of Product Development and Underwriting at BuildLoan, commented: “These products meet one of the key needs of a self or custom builder – the peace of mind that they are guaranteed to get the funds they need, at the right time, to get their build completed successfully.”

See our rate card for more information about our 80% LTV self-build products.