Leeds Building Society has re-turned to the self-build market, which it left in 2009, with a variable product.
It will release funds in five construction stages – land purchase, wall plate, roofed in, plastered out and completed.
Up to 75% of the value will be released at each stage of the build.
Phil Coombes, head of inter-mediary sales at Leeds, says: “It is often difficult to predict and budget precisely for five stages. Purchasing the land will usually be the biggest expense in a build. We will lend up to 60% of the value of this with outline planning permission and 75% if full planning consent is in place.
“The flexibility of our self-build product means the process should be easier for borrowers.”
The rate is a two-year deal currently at 6.19%, with no higher lending charge and a £999 fee.
Coombes adds: “Funds are released following an inspection by a qualified surveyor or valuer and then transferred electronically.
“This way borrowers receive the money quickly when it is required and they don’t have to pay any interest until they have received the funds.”