Many self builders will not need a mortgage when their house is finished as they have sufficient equity in their current house to cover the cost of the build. However, many do require short term funding to avoid the need to move out of their current house and into temporary accommodation during the build.
The amount which can be borrowed is based not only on income but on savings available which can be used to pay the interest on the loan over a three year period. This makes the product ideal for clients whose income is not sufficient to justify the amount they want to borrow but who have savings which can be used to pay the monthly interest.
Paul Darwin, Head of Intermediary Sales at Skipton says:
“We are pleased to work with BuildStore to solve the problem which existed in short term secured finance for self builders. The self build market is important to Skipton and we are keen to develop new solutions for this market with BuildStore.”
Raymond Connor, BuildStore’s Managing Director says:
“The Barlow report by the Joseph Rowntree Foundation identified that there was a lack of appropriate short term finance for self builders which meant that they often need to live in temporary accommodation or a caravan during the build. BuildLoan short term borrowing addresses this issue, enabling self builders to remain in their own homes while the new home is being built.”