Buckinghamshire BS cuts self-build rates and increases maximum loan size

Buckinghamshire Building Society has reduced rates on its self-build range by up to 0.25% and has increased its self-build maximum loan to £1m.

Its self-build range is available via BuildLoan, with an advance two-year discount product reduced to 6.49%, an arrears two-year discount at 6.35%, and an advance two-year discount with no ERCs at 6.54%.

The maximum loan size of £1m has been increased from £500,000 and available on properties located across England & Wales. Capital raising is acceptable and ERCs, plus other fees, may be applicable. Each case will be assessed on an individual basis and manually underwritten.

The products have been designed with BuildLoan to provide a package of Consumer Duty solutions to support brokers in delivering great outcomes to their clients and avoiding foreseeable harms.    

This includes:

• A professional review of expected build costs on every application to reduce the risk of underbudgeting and running out of money later on. 
• Stage releases agreed as part of the application with no formal valuations or LTV limits during the build, giving clients the peace of mind that they will receive the money they need to cover costs at each stage of their build. 
• A cashflow analysis for every client taking into account their project costs, the stage release and their own available cash, to ensure that they will stay cash positive right through the build to keep things moving.

Chris Martin, head of products at BuildLoan, said: “Affordability continues to be challenging for anyone looking to borrow to build their dream home. As well as lower rates to reduce monthly costs, these new BuildLoan-exclusive products from Buckinghamshire include our complete package of Consumer Duty solutions which mitigate the risks of poor outcomes and foreseeable harm by ensuring the project has been properly budgeted and the clients will get the money they need at the right time to complete their build successfully.”

Claire Askham, head of mortgage sales at Buckinghamshire Building Society, commented: “With the increased focus by the new Government on building new homes, we anticipate steady growth in the self-build sector. By reducing rates, plus also doubling our maximum loan size, we hope that this enables more borrowers to achieve their home building dreams."