The Saffron Building Society has made changes to its self-build mortgages following feedback from its members and broker contacts.
There are more options depending on the amount of capital customers have up front.
Previously, Saffron accepted applications only when the full planning approval was in place, which the society has reviewed and amended to make the process quicker.
Saffron now accepts mortgage applications with only outline plans; the offer is sent once full planning permission has been secured
Saffron has developed an option for self-builders who have less money up front to start their development. This is an alternative to its self-build mortgage with new Loan to Value options:
The self-build mortgage range now includes the following options:
Rate: 3.99% (SVR – 1.65%) discount for 24 months
LTV: Will lend up to:
– 65% of the purchase price
– 100% of the build costs
– A maximum of 75% of the gross development value
Arrangement fee: 1%
ERC: None
Repayment: interest only or repayment (if repayment chosen, interest only available during the build period up to a maximum of 24 months)
Loan amount: £30,000 up to £1m
Rate: 4.19% (SVR – 1.45%) discount for 24 months
LTV: Will lend up to:
– 80% of the purchase price
– 80% of the build costs
– A maximum of 80% of the gross development value
Arrangement fee: 1%
ERC: None
Repayment: interest only or repayment (if repayment chosen, interest only available during the build period up to a maximum of 24 months)
Loan amount: £30,000 up to £1m
Saffron’s new self-build product means customers don’t have to have as much deposit to secure the mortgage and don’t need as much money in place to fund the build costs. The Society also allows applicants to borrow more against the gross development value of their new home.
The society can lend up to £1m on each mortgage, while many lenders limit this to £500,000. It can also lend up to 100% of the build costs.
The mutual also offers flexible stage payments; funds are released in stages that can be tailored to each individual project.
Anita Arch, the Saffron’s head of mortgage sales, said: “It’s not just our mortgages that set us apart. Our aim to provide unrivalled support along the way is just as important as providing helpful products.
“We have a team of specialist underwriters who have detailed knowledge of self-build projects and will apply this to each application which will be manually checked.
“They will take time to review the details and attempt to do all they can to provide the funds your customers need for their new home.”