The Nottingham Building Society has announced that it will provide funding based purely on the costs of each element of a client’s build, eliminating the requirement for interim valuations and, with it, the risk of a customer failing to get expected funds partway through a build.
“Our lending is now linked to the cost of each stage of work, with a guaranteed stage release pattern agreed at application,” said Nikki Warren-Dean, Notthingham’s head of intermediary sales, to the Financial Reporter.
“This is a really positive step in the reinvention of our mortgage lending. We know that having the confidence that money will be available exactly when needed as work progresses is hugely important for the self and custom builder.
“There can be no underestimating the peace of mind confirmed cashflow can bring – in fact it can be key to a successful and efficient self-build project,” Warren-Dean added.
Nottingham has also revamped its self-build range, reducing the rate of one discount product, adding a two-year fee-free discount offering, and introducing a new 16-month fixed rate product, it was revealed.