Download intermediary guide - BuildStore

Specialist
self build
and renovation
mortgages
EXPERT ADVICE AND EXCLUSIVE SOLUTIONS FOR MORTGAGE INTERMEDIARIES
www.buildloan.co.uk

Self Build Solutions
for Intermediaries
Recommending the right
mortgage for your self
build & renovation clients,
is easier with BuildLoan.
BuildLoan provides intermediaries with exclusive
mortgage solutions designed specifically for
clients who are building their own home, or
converting/renovating an existing property, to
live in or let out.
Few lenders are geared up to handle these
sorts of enquiries, and in our experience,
sourcing systems simply don’t ask enough
questions. Without the answers to these
questions – it’s impossible to be confident that
the product you are recommending is best
advice for this type of client.
BuildLoan is here to help you operate efficiently
in this specialist market. We’re wholly
committed to making the self build process
quick, simple and hassle-free.
We’ll give you the necessary tools to properly
assess your client’s individual circumstances.
We’ll then suggest the best product from the
BuildLoan panel of lenders, and provide you
with a report explaining why.
Using BuildLoan, you can confidently solve
many of the common issues faced by your self
build and renovation clients, while enjoying a
level of support not available elsewhere, from
the UK’s most experienced advisers.
Best advice for you.
Best advice for your clients
• Highly experienced, qualified self build
mortgage advisers ready to discuss your
enquiry and guide you
• Unbeatable knowledge and experience in
this specialist area and first class support
• Exclusive funding solutions for your self
build, renovation, conversion,
refurbishment, home improvement and
property developer clients
• Traditional arrears stage payments or
unique advance stage payments
• Higher lending percentages – up to
85% on land (with OPP) and up to 85%
on build costs
• Clients able to remain in their own home,
while they build
• Mortgages can be repayment, interest only,
or combination of both
• Clients can make overpayments
without penalty
• Product availability in England, Wales,
Scotland & Northern Ireland
• Choice of lenders and competitive rates
• Range of added-valuable support services
including land finding, costings, site
insurance and structural warranty
• Less work, competitive procuration fee

Cashflow – central to every project,
central to best advice
Few lenders are experienced in self build mortgages, or aware of
the many issues facing clients wishing to build their own home.
And, in our experience, sourcing systems don’t ask enough questions –
without these questions – it is impossible to be sure the product is best
advice. BuildLoan can help you operate efficiently in this market.
At BuildLoan, we know that one
of the main hurdles self builders
face is, quite simply, finding
enough money to keep their
project running smoothly.
There’s no point in having
funding agreed, if it isn’t
available when it’s needed.
Cashflow and a well-managed
budget are key to a smooth
self build project, so it’s essential
to structure your clients’ self
build mortgage in line with
their cashflow.
If cashflow isn’t matched to your
clients’ projected expenses at every
stage of their project, they may
find themselves unable to meet
builders invoices, or pay for the
materials they need.
Either scenario can hinder
progress, and in the worst case
scenario, builders may leave the
project and move onto another
job, if they haven’t been paid, or
don’t have the materials to work
with. These sorts of delays are not
only incredibly stressful – they’re
expensive too.
Whereas for a standard house
purchase mortgage, it’s relatively
quick and easy to find the best
product using a sourcing system,
for a self build it’s not enough to
rely on this method.
That’s because they don’t ask
sufficient questions – and without
the answers to these questions –
it’s impossible to be sure that the
product you’re offering is
best advice.
More and more lenders are
directing their self build business
exclusively through BuildLoan,
because they recognise that this
type of client requires additional
specialist help on all sorts of issues
such as planning, costings and
cashflow projections.
Here at BuildLoan, our mortgage
packages have been carefully
designed around the very specific
needs of self builders and
renovators to ensure adequate
funding is available at each stage.
We are also uniquely positioned to
offer all of the additional support,
your clients may require.
We offer higher lending
percentages (up to 85%) on land
and build costs, and a choice of
exclusive Traditional or Advance
Stage Payment Mortgages.
We also offer interest only during
your clients’ build – to keep
payments low.
Our team of experts will
thoroughly assess your client’s
project and suggest the best
product from our panel of lenders.
In each individual case, we will
produce a specially tailored
cashflow that ensures adequate
funds are available at each
stage of your clients project.
A further important difference
with BuildLoan is our build
monitoring service. We maintain
regular and close contact with
your client throughout their
build project, which means we
are able to quickly pick up on
any difficulties they may be
experiencing and offer assistance.
Be sure your recommendation
is best advice, and give your
clients the solutions they really
need, with BuildLoan!
// SPECIALIST SELF BUILD AND RENOVATION MORTGAGES 3

Two unique funding solutions
Through BuildLoan, you can access two unique mortgage
packages which are designed to suit the very specific needs of
the self builder. They are defined by when funds are released –
in arrears or advance – and can be tailored to suit your client’s
project requirements.
Traditional Stage
Payment Mortgage
Our Traditional Mortgage works
on a typical arrears stage payment
basis. But what you’ll find with
BuildLoan is that our lending
partners are able to offer up to
85% on both land and build costs
– around 10% more than most
other lenders – and this makes life
easier all round
Our higher percentage quite simply
means that your clients have more
money, enhanced cashflow and
greater flexibility if they only have
a small deposit.
For self build projects, funds (up to
85% for land) are released to buy
the plot, with the money (again up
to 85%) for the actual build being
released at the end of each stage.
For a conversion or renovation
project, funds are released to buy
the property (usually up to 85% of
the purchase price) and the money
for building costs (again, usually
up to 85%) released at the end of
each stage.
Advance Stage
Payment Mortgage
At BuildLoan, we recognise that
not everyone has the cash required
to complete the early stages of
their build – or is able to release
equity from their existing property
to buy or put down a deposit on
land. That’s why we’ve created
an alternative.
Our unique Advance Stage
Payment Mortgage releases the
funds at the beginning of each
stage rather than the end.
With the Advance Stage Payment
Mortgage, it’s possible to borrow
up to 85% of the cost of the land
or a renovation property and
up to 85% of the cost of the
building works.
Intermediaries can access
advance stage payments
exclusively through BuildLoan.
Traditional Mortgage
KEY FEATURES
• Up to 85% on land
• Up to 85% on build costs
• Money in agreed stages
subject to valuation
• Clients can stay in current
home as they build
• Choice of leading lenders
and competitive rates
Advance Stage
Payment Mortgage
KEY FEATURES
• Up to 85% on land
• Up to 85% on build costs
• Money in guaranteed
advance stage payments at
the start of each build stage
• Stage amounts are not
determined by interim
valuation
• Clients can stay in current
home as they build
• Clients can receive the money
to pay for their timber frame
kit when required
• Choice of leading lenders
and competitive rates
4
// SPECIALIST SELF BUILD AND RENOVATION MORTGAGES

Unique scheme, giving you the
edge when advising on self build
Our exclusive funding solutions provide self builders with enhanced
cashflow and make homebuilding quicker, cheaper and easier.
To provide the lender with the additional security required over and
above the security they have from your clients land and development
project, BuildStore has created the Additional Security Benefit Scheme.
The Additional Security Benefit Scheme is unique to
BuildLoan and accepted by our panel of lenders. It is
this scheme that enables them to release more money
to your clients earlier in their project and/or advance
stage payments.
Without the benefits offered by this scheme, many projects
can’t get off the ground. Unless your clients have a large
amount of cash sitting in the bank to fund the early
stages of their project, their self build may not be viable
without the enhanced cashflow offered by our products.
Clients wishing to build a timber frame can also benefit
hugely from advance stage payments because this type
of construction is more expensive in the early stages
than a brick and block build as you have to pay for the
whole system up front.
The house we have now would not
have been possible without the
Advance Stage Payment Mortgage
and the cashflow it gave us
The Additional Security Fee
A one-off ‘additional security fee’ is payable by
your clients upon mortgage completion. This fee
is used to buy an insurance policy for the benefit
of the lender.
The fee charged will be dependent on the amount
of additional cashflow required by your client.
In simple terms, the higher the percentage of the
costs of the project being borrowed, the higher the
amount of the fee.
Every fee will be different. The KFI will illustrate
the average fee at that time and an accurate fee
will be provided, as soon as we are in receipt of
your client’s costings and know the level of funds
required, at each stage of their project.
For most clients, the additional security fee is recouped
by savings made on their project, as a result of enhanced
cashflow provided during their project.
Clients can enjoy a quicker build, coupled with being
able to negotiate better cash deals on their labour
and materials.
They can also save considerably on the cost and
upheaval of moving into temporary accommodation
because with BuildLoan, there is no requirement
for them to sell their current home before they build
their new one.
Being able to keep our young
family in our own home
during the build was a great
weight off our shoulders
// SPECIALIST SELF BUILD AND RENOVATION MORTGAGES 5

Enjoy a level of knowledge and
expertise not available elsewhere
With BuildLoan, you can feel certain that you are placing your
business with a company that is highly experienced in the self build
market. As the UK’s experts, we can provide a level of knowledge and
expertise not available elsewhere. BuildLoan can handle all of your
customer queries and offer genuine solutions – solving all of the most
common issues faced by this type of client.
What can BuildLoan
do for you?
Help you find the right mortgage or
finance product to suit your client’s
project requirements
Through BuildLoan, you can tap into exclusive
solutions for your self build and renovation clients,
from a panel of leading lenders.
With such a diverse range of products available,
we’ll first provide you with the tools you need to
offer best advice. Our specialist advisers will then
thoroughly and quickly assess your client’s
requirements, and suggest the financial solution best
suited to their needs as a self builder or renovator.
We’ll also provide you with a report, detailing the
reasons why this particular product is best suited
to their needs – along with reasons we’ve discounted
all others.
Support you and your client throughout
the project ensuring the process is smooth
running, and efficient
The experienced BuildLoan broker team are
specialists in their field and always happy to help
you and your clients.
With unbeatable knowledge and unrivalled expertise,
our team can advise your clients throughout their self
build or renovation journey. This includes issues such
as planning, budgets, costings and cashflow –
allowing you to concentrate on the mortgage.
We maintain regular and close contact with your
client throughout their build project, which means
we are able to quickly pick up on any difficulties
they may be experiencing and offer assistance.
A unique service
• Dedicated broker desk to answer all
of your questions, staffed by highly
experienced, qualified self build
mortgage advisers
• Exclusive mortgage products designed
to suit the needs of self builders
• The tools you need to properly assess
your client’s requirements
• Cases checked thoroughly and
outstanding items chased on
your behalf
• Preparation of cashflow for your
clients’ project
• Cases expertly packaged and passed
to lender for offer
• Liaison with your clients’ solicitor
• Site insurance & structural warranty –
competitive cover can be arranged
• Stage releases managed throughout
• Build monitoring – regular contact
with your client to ensure smooth and
timely progress
• Guaranteed alert at the end of your
client’s project to allow you to review
their ongoing mortgage requirements
6
// SPECIALIST SELF BUILD AND RENOVATION MORTGAGES

Frequently asked questions
Answer all of your client’s questions with confidence with BuildLoan.
Our expert broker desk is staffed by specialist self build mortgage
advisers – ready to help you with all of your client’s questions, and
provide you with unbeatable knowledge and exclusive solutions.
Can I borrow for land
purchase with BuildLoan?
Yes, BuildLoan can provide up to 85% on land purchase, with just outline
planning permission. This makes buying at auction a possibility and speeds
up the process of acquiring a plot, while also reducing the deposit required.
Do I need to sell my current
home first?
No, with BuildLoan it’s possible to stay in your current home as you build
your new one – so you can avoid the upheaval and costs of moving to
temporary accommodation.
I don’t have a large deposit
– can you help?
BuildLoan offers higher lending percentages on its mortgages so you
won’t need to find as much money upfront for your deposit.
How can I make sure
I have enough cash during
my project?
How can BuildLoan offer
advance stage payments and
higher lending percentages?
BuildLoan offers unique guaranteed advance stage payments, or
traditional mortgages with higher lending percentages , so you can be
sure you’ll be in the best possible cash position during your build. It’s
also possible to keep your mortgage payments low with an interest only
mortgage for the duration of your build.
There is a one-off ‘Additional Security Fee’. This fee purchases an
indemnity giving the lender the additional protection they require to
release more money to you during the build than their standard lending
policy would allow.
Does this make BuildLoan
more expensive?
Time is money. A quicker build, coupled with being able to negotiate
better cash deals on their labour and materials, and the ability to stay in
your current home as you build, means that this fee is usually recouped
by the savings made during your build. It’s money well spent for the
peace of mind offered and the improved cashflow provided,
I need money early on to pay
for my timber frame?
With BuildLoan you can receive the cash you need
to pay for your timber frame when you need it.
Can I have an interest only
mortgage during my build?
Yes, while most lenders won’t allow interest only during your project,
BuildLoan is able to offer repayment, interest only, or a combination or both.
Can you help with insurance
for my project?
Yes, you will need to have adequate insurance in place before any lender
will release funds to you. I can arrange highly competitive site insurance
and a 10 year structural warranty for you through BuildLoan.
// SPECIALIST SELF BUILD AND RENOVATION MORTGAGES 7

For intermediary use only
The activities carried out by BuildLoan are
not regulated by the Financial Conduct
Authority. The BuildLoan Broker Desk
is staffed by qualified self build mortgage
advisers who will offer you – the broker –
expert advice on the best product for
your client’s requirements. All responsibility
for the advice given to your client remains
with yourself.
Remember your clients can feel confident and
assured when they finance their project with BuildLoan
BuildLoan Ltd , Kingsthorne Park, Nettlehill Road, Livingston, EH54 5DB
Tel 0845 223 4447 Email: buildloan@buildstore.co.uk Web: www.buildloan.co.uk