Saffron Building Society has made changes to its self-build mortgages in response to feedback from members and broker contacts.
Both products have a minimum loan amount of £30,000 and maximum of £1m, no ERCs, a 1% arrangement fee and repayment options of interest-only or repayment. If repayment is chosen, interest-only is available during the build period up to a maximum of 24 months
Anita Arch, Saffron’s head of mortgage sales, said: “It’s not just our mortgages that set us apart. Our aim to provide unrivalled support along the way is just as important as providing helpful products.
“We have a team of specialist underwriters who have detailed knowledge of self-build projects and will apply this to each application which will be manually checked.
“They will take time to review the details and attempt to do all they can to provide the funds your customers need for their new home.”
There’s a 3.99% product up to 65% LTV of the purchase price, with 100% LTV of the build costs, and maximum of 75% gross development value and there’s a 4.19% product available up to 80% LTV of the purchase price and build costs and a maximum 80% of the gross development value.
In the past, Saffron accepted applications only when the full planning approval was in place, which the society has reviewed and amended to make the process quicker. It now accepts mortgage applications with only outline plans and the offer is sent once full planning permission has been secured.