Loughborough signs up for self-build with Buildstone
Loughborough Building Society’s upgrade in its support as a mortgage lender to the self-build market, will only form a small portion of what it does, according to its chief executive.
Gary Brebner, said that it has provided mortgages to the self-build market for some time, but has “upgraded” by partnering with self-build and renovation specialist, Buildstore.
Mr Brebner said: “Working with Buildstore to engage with self builders fits perfectly with the society’s values as a customer-focused mutual. We fully support the government’s commitment to self build as a viable route to sustainable housing in addition to the boost in local employment that it can provide.”
He added that outside of London there has been quite a dramatic increase in interest and subsequent action of people going out and finding a way of self-building a home.
“We looked at the market quite carefully and saw this as an area where people needed financing for their homes, which is obviously what we are about,” Mr Brebner said.
He added: “It will always be a smaller market, it is not going to be half of what we do. There has been a lot of growing interest in it, but I don’t think it is for everyone, it is more labour intensive both from Buildstore’s perspective, or if you are the lender there are a lot more steps you need to go though.”
Raymond Connor, founder and chief executive of Buildstore Financial Services, said that the self-build market is particularly attractive to the mutual sector.
He said: “It has resonated to the mutual sector and to that extent they are the main funders of self-build lending in the country at the moment.
“There are certain FSA limits and only a percentage of their book can go on self-build, but I would expect over the next 12 months most societies to have some sort of offering in this market.”