Saffron develops new self-build product
A new mortgage product replacing its existing deals for self-builders has been developed by Saffron for Intermediaries.
The product is provided on an interest-only basis for a period of 24 months, after which the borrower can switch to another Saffron mortgage or remortgage to another lender.
The new self-build mortgage includes a 4.20% discount for 24 months, a 1% arrangement fee, no early repayment charges and interest-only repayment for a maximum of 24 months.
Saffron will lend up to 65% of the purchase price of the plot, 100% of the build costs and a maximum of 75% of the gross development value.
Anita Arch (pictured), head of mortgage sales at Saffron, said: “We’ve listened carefully to feedback for self-builders.
“This deal, which offers a combination of a discount, interest-only payments and drawdown’s as required, ticks all the boxes.”
Saffron will also accept applications from first-time buyers.
Arch added: “This will be of interest to offspring who plan to build on spare land that may have been released by their parents.”