Reflecting the growth of the UK’s self-build mortgage market, The Mansfield Building Society has today announced the launch of a new advanced stage payment mortgage product in partnership with self-build specialist BuildStore Mortgage Services.
BuildStore’s Accelerator is the only mortgage product that works on an advance stage payment basis. It has been designed to specifically suit the needs of self builders, and reflect the intricacies of funding a homebuilding project. With an Accelerator, money is released at the beginning of each key stage of construction, providing cash exactly when it’s needed. Typically the stages are: purchase of land; preliminaries and foundations; wall plate level (or timber frame kit erected); wind and watertight; first fix and plastering; and second fix to completion.
In terms of lending, The Mansfield will consider self-builders, renovators and those hoping to work on conversion projects for residential purposes in England and Wales. Applicants will be able to borrow up to 85% Loan to Cost (LTC) initially, and 85% Loan to Value (LTV) overall. Following the initial release for the purchase of land, up to £75,000 can be released for each subsequent stage of the project.
The Mansfield’s Accelerator product is available exclusively through BuildStore, offering a minimum loan amount of £25,000 up to a maximum of £500,000. In addition, a 2-Year Discounted Variable Rate offers an initial payable rate of 5.19%, which reflects a 0.15% discount.
Raymond Connor, Chief Executive of BuildStore, said:
“Our partnership with The Mansfield Building Society demonstrates the growing commitment of lenders to the self-build housing market. This reflects both the Government’s continued support of the sector and increased public awareness of self-build, which is at an all-time high.”
“As the market continues to grow, the demand for tailored financial products will steadily increase, too, and prospective self-builders will naturally turn to specialists in order to secure the right type of funding. Our partnership with The Mansfield will enable more self-builders complete a successful project using the right kind of finance.”
Gev Lynott, Chief Executive at The Mansfield said:
“We have worked with BuildStore to support self build for a number of years now and I am pleased that we have been able to extend the lending options we offer. By providing mortgage finance in advance of each stage of the build process, our approach should encourage and enable more people to consider self building their dream home.
“We are also working closely with BuildStore to help encourage a greater take up of Custom Build, where a specialist ‘enabling’ developer is engaged to provide serviced building plots and assist in designing and developing a personalised new home for individuals.”
“Products like The Mansfield’s Accelerator mortgage and modern methods of construction now make the prospect of self building a reality rather than a distant dream. We’re proud to be further supporting the self build industry with BuildStore given the current housing need. With more choice becoming available, it’s important that local and central Government play their part in supporting growth of these increasingly popular schemes.”