The Hinckley & Rugby Building Society has partnered with BuildLoan to offer a new self-build product.
The higher loan to value (LTV) mortgage from Hinckley & Rugby is a two-year discount product charging an initial 4.99% interest.
The money will be advanced in five stages, with Hinckley & Rugby lending up to 85% of the value of the land purchased and then up to 85% of the cost of the build.
The maximum LTV of the completed home is 75%.
There is an application fee of £199 and a completion fee of £800. Stage payments are in arrears.
There are valuation fees and early repayment charges of 2% in both years.
Carolyn Thornley-Yates, Hinckley & Rugby head of sales and marketing, said: “We’ve been offering self-build mortgages since 2013 so have the know-how to help self-builders achieve their dreams.
“Partnering with BuildLoan will enable us to better serve the intermediaries advising the growing number of self-builders, many of whom need higher LTV borrowing to create the home they desire.
“They can borrow up to £500,000, we’ll pay the cost of an additional security fee and we will apply our manual underwriting to carefully assess each application, working with intermediaries to fully understand all aspects of the case.”
Raymond Connor, BuildLoan CEO, added: “I am delighted that Hinckley & Rugby Building Society has joined our lender panel with the launch of a new mortgage product for self build. Notwithstanding the current political unrest, the self and custom build sector is growing and we believe 2020 will see unprecedented demand.”
