Saffron Building Society launches self-build mortgages

Thursday, 08 October 2009 12:00

Saffron Building Society is launching specialist self-build mortgages to meet the growing demand for loans to fund home building projects.

The lender has joined forces with BuildStore Financial Services to provide funding for people building their own homes, and also for renovation and conversion work.

It comes as BuildStore's figures reveal more than double the amount of building opportunities were taken up by people creating their own homes last month compared to the start of the year.

Andy Golding, Saffron's chief executive, said: "There's no doubt that homebuilding projects are a very attractive alternative for homeowners in the current market and the opportunity to secure a healthy chunk of equity along with a home designed and built to suit your needs is certainly appealing."

Saffron and BuildStore will lend up to 85 per cent of the cost of the land or building being developed and 85 per cent of the building or renovation costs.

To provide a consistent cash flow, funds are released in stages in advance of each phase of the construction process.

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