The Ipswich Building Society has introduced a new self-build hub, designed to offer expert advice on the self-build mortgage market and to make it easier for intermediaries to support their self-build clients.
The hub, which sits on the Society’s intermediary site, consists of a purpose-built, digital location hosting the Society’s entire library of self-build content, including a collection of useful guides, downloads, and a step-by-step process of how to submit a self-build mortgage case.
The Society has also improved its existing self-build offering by reducing the product interest rate. The two year discount rate is now available at the Society’s SVR, currently 5.74%, minus 1.75% giving a current interest rate of 3.99%. (Previously the product was offered at SVR minus 1.64%, giving an interest rate of 4.10%.) A £1,000 completion fee, £199 application fee, CHAPS fee of £35 and a tiered valuation fee based on property value applies.
Self-build mortgages are available on new projects, conversions, renovations, and knock-down and rebuild projects, with loans up to the value of £750,000 and a maximum 80% LTV.
All loans are available on an interest-only basis with a flexible staged release of funds throughout the build, enabling borrowers to avoid paying interest on the entire loan amount upfront. Cases where an applicant is remortgaging from another lender on a self-build basis are also welcomed.
Once the build is complete, borrowers can then switch to one of the Society’s residential loyalty products.
Richard Norrington, CEO at Ipswich Building Society, said: “We have amassed a wealth of experience in self-build cases over the years, and today, one in twenty of the mortgages currently on our books is a self-build loan, with projects spanning across England and Wales. self-build is an increasingly popular market, with more people seeking to build from scratch or make large scale renovations to suit their family circumstances and requirements. We are therefore delighted to be able to share our knowledge and provide expert guidance to intermediaries in the self-build field.
“By hosting all of our self-build content on a centralised, easily-accessible platform we have created an invaluable tool for brokers, and I am confident that the hub will help cement our position as the go-to place for mortgage intermediaries with self-build cases.
“We also hope that by providing a comprehensive overview of the self-build process, we can reassure brokers who may be less familiar with this type of product that self-build cases aren’t as complex as they may first appear.”
As well as receiving self-build submissions through mortgage packagers, intermediaries can approach the Society directly with self-build cases.
Kate Ley, head of Mortgage Sales, added: “With around one in five self-build cases coming in straight from intermediaries themselves we’re keen to do more to directly support them with their self-build clients.”
“We have a highly knowledgeable team of business development managers, and supporting consultants available who are well versed in the self-build niche, therefore we can provide valuable assistance to intermediaries no matter how great or small their experience of the self-build market may be.”
