Hanley Economic Building Society has reported a 35% increase in Self-Build advances over an 18 month period running rom the beginning of January 2019 to the end of June 2020.
The extension of Hanley Economics’ self-build and residential product range into Scotland in April 2019 is cited as a major driving force behind this growth. The Societies’ ‘build for a second home’ product – aimed at self-build clients looking to contrast a second residential home – and the lenders ‘part complete’ self-build product – aimed at borrowing for projects which are already underway – have also provided key to this ongoing success. Both of these products were launched in December 2019.
The Society has also updated it’s self-build guide to ensure their clients are better educated and informed on the self-build market during the current economic climate. As well as a frequently updated guide, brokers can also find a full costing calculation sheet, application checklist, lending criteria and list of unacceptable and acceptable properties.
The 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 proves and modern methods of construction continue to push homebuilding boundaries. Factors which suggest 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 process to demonstrate that this area of lending is not as intimidating as many think. With that in mind, I urge intermediaries not to ignore this growing sector and speak to lenders about the support on offer so more tof their clients can achieve their self-build dreams.
– Sue Pedley, BDM