Saffron develops new self-build product

Jessica Nangle

June 27, 2017

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.”

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