Download intermediary guide - BuildStore
Download intermediary guide - BuildStore Download intermediary guide - BuildStore
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
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- Page 3: Cashflow - central to every project
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Two unique funding solutions<br />
Through BuildLoan, you can access two unique mortgage<br />
packages which are designed to suit the very specific needs of<br />
the self builder. They are defined by when funds are released –<br />
in arrears or advance – and can be tailored to suit your client’s<br />
project requirements.<br />
Traditional Stage<br />
Payment Mortgage<br />
Our Traditional Mortgage works<br />
on a typical arrears stage payment<br />
basis. But what you’ll find with<br />
BuildLoan is that our lending<br />
partners are able to offer up to<br />
85% on both land and build costs<br />
– around 10% more than most<br />
other lenders – and this makes life<br />
easier all round<br />
Our higher percentage quite simply<br />
means that your clients have more<br />
money, enhanced cashflow and<br />
greater flexibility if they only have<br />
a small deposit.<br />
For self build projects, funds (up to<br />
85% for land) are released to buy<br />
the plot, with the money (again up<br />
to 85%) for the actual build being<br />
released at the end of each stage.<br />
For a conversion or renovation<br />
project, funds are released to buy<br />
the property (usually up to 85% of<br />
the purchase price) and the money<br />
for building costs (again, usually<br />
up to 85%) released at the end of<br />
each stage.<br />
Advance Stage<br />
Payment Mortgage<br />
At BuildLoan, we recognise that<br />
not everyone has the cash required<br />
to complete the early stages of<br />
their build – or is able to release<br />
equity from their existing property<br />
to buy or put down a deposit on<br />
land. That’s why we’ve created<br />
an alternative.<br />
Our unique Advance Stage<br />
Payment Mortgage releases the<br />
funds at the beginning of each<br />
stage rather than the end.<br />
With the Advance Stage Payment<br />
Mortgage, it’s possible to borrow<br />
up to 85% of the cost of the land<br />
or a renovation property and<br />
up to 85% of the cost of the<br />
building works.<br />
Intermediaries can access<br />
advance stage payments<br />
exclusively through BuildLoan.<br />
Traditional Mortgage<br />
KEY FEATURES<br />
• Up to 85% on land<br />
• Up to 85% on build costs<br />
• Money in agreed stages<br />
subject to valuation<br />
• Clients can stay in current<br />
home as they build<br />
• Choice of leading lenders<br />
and competitive rates<br />
Advance Stage<br />
Payment Mortgage<br />
KEY FEATURES<br />
• Up to 85% on land<br />
• Up to 85% on build costs<br />
• Money in guaranteed<br />
advance stage payments at<br />
the start of each build stage<br />
• Stage amounts are not<br />
determined by interim<br />
valuation<br />
• Clients can stay in current<br />
home as they build<br />
• Clients can receive the money<br />
to pay for their timber frame<br />
kit when required<br />
• Choice of leading lenders<br />
and competitive rates<br />
4<br />
// SPECIALIST SELF BUILD AND RENOVATION MORTGAGES
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