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Accelerator makes builds happen

Posted by Tom McSherry on January 17, 2018

Unlike a conventional arrears stage payment mortgage where the self builder has to use their own funds to progress the build, Accelerator delivers funds up front to secure the plot and importantly before every stage of the project build.  With up to 95% available to secure the plot or project and up to 95% of the build costs made available, Accelerator means more of your clients can realistically aspire to build their own dream home.

Having the funds before each stage of their build means your clients can pay their suppliers and trades teams whenever they want paid at milestone stages of the build – monthly, weekly or even daily!

Receiving cash upfront ensures those clients choosing an offsite produced timber frame, sips panel or ICF superstructure can meet the payment terms of their supplier – often as much as 90% of the system needs to be paid for, before it leaves the factory.

With Accelerator, your clients become cash buyers of materials and as a result, they won’t need to create merchants accounts and can negotiate better terms.

One of the biggest benefits of Accelerator is that your clients can continue to live in their own home while they build their new home.  This saves money and the inconvenience of finding temporary accommodation during the build process.  The Accelerator mortgage simply runs alongside the existing mortgage throughout the project and is treated as a commitment by the lender.

The Accelerator mortgage provides up to 95% on land and up to 95% on build costs in advance and stage payment amounts are not determined by interim valuation.

If you have clients extending their current home but unable to release equity from their current property, the Accelerator mortgage can clear the existing mortgage and release funds before each stage of the works to extend the property because the loan will be based on the anticipated end value, rather than the current value that a traditional mortgage would take into account.

Nowhere is cashflow more critical than with a renovation or conversion project because the first stage of this type of development results in the project often being devalued as many projects require removal or repairs to the roof, windows and remedial work to the superstructure.   

With a traditional arrears mortgage where funds are released after each stage, funds are based on the property’s value increasing after every stage is completed.  This proves challenging where there is no certainty that the property will increase in value, or by how much.   The Accelerator mortgage provides funds at the beginning of each stage based on the costs of that stage, therefore, ensuring funds are available when required and removing uncertainty.

The BuildLoan Broker Desk can help you assess your client’s individual circumstances and suggest the best product for their project, making sure sufficient funds are available at every stage.

To view Accelerator Mortgages available exclusively to intermediaries from BuildLoan, click here and select ‘Advance’  under Stage Payment Type.

For more information on stage payment mortgages from BuildLoan please click here.

To submit an enquiry to the BuildLoan Broker Desk or request call back please click here.







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