The Saffron Building Society has lent £40 million for self-build projects since the beginning of the year.
The East of England based mutual says this figure makes up 14% of its total new lending.
This follows the recent announcement by housing minister Grant Shapps, that a £30 million Government fund is to be made available to the house building community.
Shapps wants the self-build sector to double in size, the Saffron said.
“We have backed the self-build community for some time now,” said Jon Hall, CEO of Saffron Building Society.
“At a time when property prices are out of reach for many, self-build gives our customers another option of getting on the housing ladder.
“We support the government’s initiative to increase funding to this sector, and hope that with this and a joint effort from lenders, the self-building community can thrive.”