BuildLoan has introduced a new low cost self-build mortgage for borrowers who can inject more of their savings into their housebuilding project.
This new product from Chorley Building Society is exclusively available from BuildLoan for intermediaries, for customers in England, Scotland and Wales.
It has a pay rate of 3.80%, which is a 2-year discount of 1.44% off the society’s standard variable mortgage rate which is currently 5.24%.
Lending up to a maximum of 70% loan-to-cost, the product is available for loans of up to £600,000 for self-build, custom build, renovations and conversions.
There is no application fee, early repayment charges, or mortgage indemnity fee.
A fee of 1% of the loan amount is payable to Chorley on completion, which can be added to the loan.
Monthly payments can be interest-only during the build in order to keep costs low.
The product also comes with cost-based stage payments, with stage releases tailored to a customer’s project costs and guaranteed irrespective of valuations carried out by the lender.
Chris Martin, head of product development and underwriting at BuildLoan, added: “We are really pleased to launch this competitive new cost based product with Chorley which offers a fantastic low rate and significantly reduced set up costs for those self builders who are able to contribute more of their own funds to their project.
“We are continually working with our lender panel to come up with new and innovative products for this sector.”
Julie Goodwin, head of business development at Chorley, added: “We recognise that clients who are able to contribute more to their self-build project represent a lower lending risk and we are really pleased to offer this new low rate, low fee product through BuildLoan to acknowledge this.”