Newcastle Intermediaries has expanded its self-build proposition by introducing advance stage payment products exclusively available through BuildStore Mortgage Services and its intermediary arm, BuildLoan.
The accelerator product, also known as an advance stage payment product, is designed to support borrowers who would benefit from having funds released at the beginning of the building phase.
Stuart Miller, customer director at Newcastle Intermediaries, said: “We’re pleased to be able to provide this additional support for borrowers who are wanting to build their own home.
“The advance stage payment product provides access to capital at an earlier stage as we can advance up to 85% of the phase costs, meaning more flexibility and the comfort of knowing that the funding is accessible in advance of each stage.”
Both self-build and custom build borrowers can either choose a 2-year base rate tracker or a 2-year fixed rate.
The 2-year base rate tracker is currently at 5.29% and available at a maximum LTV of 85%, fees of £1,194 with 10% overpayments per annum and an early repayment charge of 2% until 31 July 2020and 1% until 31 July 2021.
Alternatively, a 2-year fixed rate is available at 5.59% at a maximum LTV of 85%, fees of £1,194 with 10% overpayments per annum and an early repayment charge of 2% until 31 July 2020 and 1% until 31 July 2021.
Raymond Connor, chief executive at BuildStore, added: “We’re delighted that Newcastle have decided to increase customer choice with this advance stage payment option.
“The new product underlines the society’s commitment to the self and custom build sector, and the understanding of customer’s needs.
“The advance stage payment option comes into its own where the borrower is building using offsite construction methods, such as timber frame, SIPS panels, or indeed any building system which requires a substantial payment before the structure leaves the factory.”