Ipswich Building Society will now lend on Modern Methods of Construction (MMC) properties after changing its self-build lending criteria.
The change applies to Ipswich’s existing product range, with products being available for new borrowers and remortgagors.
MMC typically involves prefabricating the structural units of a building off site, or manufacturing them on site by contemporary methods.
Richard Norrington, chief executive at Ipswich Building Society, said: “Through our commitment to seeing diversity in mortgage lending, we have made changes to our lending criteria to further support the growing community of self-builders.
“I am delighted that we continue to offer mortgage applicants an alternative to the machine-only mortgage application processes used by some larger lenders.
“By assessing each mortgage application on its individual merits, we can take a true assessment on credit-worthiness, and make an informed decision when lending.”
To be accepted applicants’ chosen scheme must be accredited through the Buildoffsite Property Assurance Scheme (BOPAS).
BOPAS is an initiative jointly developed by Buildoffsite, The Royal Institution of Chartered Surveyors, Lloyd’s Register and Building LifePlans Ltd, in consultation with the Council of Mortgage Lenders (now UK Finance) and the Building Societies Association. It provides lenders with assurance that the properties against which they may be lending will be sufficiently durable and readily saleable for a minimum of sixty years.
Ipswich’s self-build range has a decreasing early repayment charge of 3% for the first 12 months and 0% for the remaining 12.
The society’s mortgage products have a 50% fee free overpayment facility, where borrowers can overpay penalty free by up to 50% of the original loan amount.