BuildLoan has launched an early repayment charge (ERC) free self-build product range with Nottingham Building Society.
BuildLoan has worked closely with the society to design two self and custom-build mortgage products; both are 2-year discounted rates based on arrears stage payments, available on an interest-only basis during the build.
They have a maximum loan-to-value (LTV) of 80% with land and build costs also up to 80%.
Loans start at £50,000 up to £600,000, or a maximum of £500,000 if interest-only is taken for the whole term of the mortgage.
The first product has an initial pay rate of 3.99%, the completion fee is £1,499 and there is no application fee.
The second product has an initial pay rate of 4.14%, a completion fee of £499 and no application fee.
Both products also have no lender re-valuation fees and no lender stage release fees or telegraphic transfer fees.
The deals are available to professional contractors and employees with high amounts of commission.
In addition, for self-employed clients, lending can be based on the latest year’s income in some circumstances.
Chris Martin, head of product development and underwriting at BuildLoan, said: “These ERC-free products provide flexibility to clients and complement The Nottingham’s comprehensive lending policy.
“The products are available to the increasing number of self and custom builders using more efficient modern methods of construction to build their home.”
Nikki Warren-Dean, head of intermediaries at The Nottingham, added: “Self and custom build is an increasingly important part of the new-build housing sector.
“We have worked with BuildLoan to create a product range and lending policy to meet the needs of a wide range of customer circumstances.”