Newcastle Intermediaries is widening the availability of its self and custom-build product range available through Buildloan by increasing LTV from 80% to 85%.
The new range includes a self-build fee-assisted two-year variable rate (arrears stage payments) at 5.89% (APRC 4.4%) with zero product fees and Mortgage Indemnity Guarantee fees paid by the lender.
The product has an early repayment charge of 1% until 30.11.2023 but allows 10% overpayments per annum.
The lender is also offering a self-build two-year variable rate at 5.99% (APRC 4.4%) with no early repayment charge and zero product fees. This product is available to both custom build and self-build borrowers and on both an arrears and advanced stage payment basis.
John Truswell, head of intermediary mortgages at Newcastle Building Society, said: “The future launch of the Help to Build Scheme should support more people build their own homes, so we’re pleased to increase the availability of our range through BuildLoan. It will provide more options for borrowers, especially those who may have less cash to invest in the initial build phase.
“By providing assistance with fees – especially the MIG fees – we’re able to give borrowers greater confidence and clarity regarding one-off costs.”
Chris Martin, head of product development and underwriting at BuildLoan, added: “These new products available through BuildLoan have some great features that meet the specific needs of self-builders. Stage releases are linked to build costs giving huge peace of mind that clients will always receive the funds they are expecting during the build. The ERC-free and fee-free options provide the flexibility and cost-savings which can be really valuable to anyone building their own home.”