As part of the deal Saffron will provide mortgages for self build, renovation and conversion projects, lending up to 85% of the cost of the land or building to be developed, and 85% of building or renovation costs.
Additionally, the funds for the build are released during the project in advance of each stage of construction, providing the homebuilder with a positive cashflow, vital to buy materials and pay tradesmen.
Andy Golding, chief executive of Saffron, says: “There’s no doubt that homebuilding projects are a very attractive alternative for homeowners in the current market.
“Working with BuildStore, we can provide a tailored solution for these types of projects and allow more people to take advantage of the current opportunities.”
Raymond Connor, chief executive of BuildStore, says the firm has seen a great deal of interest in the self build market, which in part he attributes to the credit crunch.
He says: “The negative effects seen in the mainstream housing market and the positive effects on the self build market add up to make homebuilding a very viable alternative to buying on the open market.
“We are delighted to join forces with Saffron to provide funding solutions for self builders. With the right type of finance, homebuilders can capitalise on the availability of cheap land now, before prices start to rise again.”