Hanley Economic Building Society reports that between January 2019 to the end of June 2020, self-build advances saw a rise of 35%, largely down to the extension of the firms’ self-build and residential product range into Scotland in April 2019.
The Society’s ‘build for second home’ product – aimed at self-builders looking to construct a second residential home – and the lenders ‘part-complete’ self-build product – aimed at borrowing for projects which are already underway – have also proved key to this ongoing success. Both of these products were launched in December 2019.
The Society has also updated its self-build guide to ensure intermediary partners and their clients are better educated and informed on the self-build market during the current economic climate.
The guide has been updated to include a full costings calculations sheet, an application checklist, ongoing lending criteria and extensive listings of acceptable and unacceptable self-build property types.
Sue Pedley, business development manager at Hanley Economic Building Society said, “This gradual uplift in self-build business has been generated over a lengthy period, meaning these figures are certainly no flash in the pan. It’s clear that existing homeowners are looking to take greater control over their ever-changing property needs, FTB’s are also less phased by the self-build process and modern methods of construction continue to push homebuilding boundaries.
“Factors which suggest that the appeal of self-build is only likely to rise.
“As a lender who is passionate and committed to self-build, we’re proactively engaging with an increasing number of intermediaries to highlight the types of self-build options on offer and break down the processes to demonstrate that this area of lending is not as intimidating as many people think. With that in mind, I urge intermediaries to speak to lenders about the support they can offer which will enable more of their clients to achieve their self-build dreams.”