Mortgages plc opens up to self-build

The range will be available to those aiming to borrow on a self-build, self-certification basis up to 85 per cent loan-to-value (LTV). The product extensions also enable full-status up to 95 per cent LTV.

Funds will be released in four stages: after construction to first floor level, having the roof completed, the property weatherproofed, and final completion of the development, with 25 per cent of the funds released at each stage. Most of the non-conforming products will be available on a self-build basis, with no additional loadings.

Pete Thomson, sales director at Mortgages plc, said: “The self-build sector is growing strongly. One-in-eight new homes and one-in-four detached homes are self-build. Collectively, self-builders are Britain’s biggest house builders.

“We believe the right approach to this market is to open up our product range to self-builders rather than produce bespoke products. All our normal criteria apply, including self-cert and our affordability calculation. The only difference is that funds are released on a staged basis.”

Darren Pescod, managing director of The Mortgage Broker, said: “This opens the market for self-builders. Why should people with blemishes on their credit history be refused a mortgage when they want to build their own house? I’m surprised so many new houses are self-build, as it’s not a big mortgage market. Many of people like the concept, but for most it remains a dream.”