That happens with builders too (and kitchen companies, window companies, etc etc)! There's no need to insure against it, lenders will lend - and do. Some won't, but it's a tiny amount (Coutts, for example). Buildstore provide mortgages tailored for self-build - and they even do advance stage release so you can draw-down the funds needed in advance of the work being carried out. They don't even ask for vesting certificates. It's a no-brainer; I guess the self-build market is one they want to be in.
If anything, working with a bona-fide timber frame company would de-risk a build, surely? All engineering and materials accounted for, accredited manufacturers and installers, the ability to check their credit scores and so on is all possible.