Saffron for Intermediaries has launched a lower-rate mortgage for self builders for a limited time only.
As part of an autumn sale, the lender is offering a variable mortgage rate reduced from 4.45 per cent to 4.20 per cent.
The self build mortgage is available to first time buyers and clients can have up to five times their income considered on application. It is ideal for those aiming to start their project before the end of the year.
Colin Field, chief executive of Saffron Building Society, said: “We know there is growing demand for self build homes and we want to support our brokers and their customers who are keen to go it alone on a building project.
“Many will have taken time off during the summer giving them head space to plan their dream self-build house project. Our Autumn Sale will now help in that next step, getting the finances in place to make this dream become a reality.”
Applications are assessed by a specialist self build underwriter and offers flexible stage payments, so funds can be tailored to each individual projects.
Self build mortgages are designed for people building their home from scratch or carrying out thorough renovations.
Lenders will release funds in stages, as agreed according to the nature of the project and estimated timelines.
There are two options available: arrears stage payment mortgages and guaranteed advance stage payment mortgages.
The right option for you will depend on various factors, so make sure you talk to an experienced specialist ahead of choosing a product.
According to Ipsos Mori, self build is growing in popularity as one in seven people in the UK have considered building their own home.
The survey also revealed the public is growing disenchanted with the houses offered by many of the big developers.
Colin added: “A project like this may seem daunting to many but one of our specialist team will be pleased to help customers complete this important step in the process – helping to reduce the stress.”
Robert Sinclair, chief executive of the Association of Mortgage Intermediaries, said: “In a world where self-build is becoming more popular it is great to see the mutual sector immersing itself with great offers to the public and via the broker community.
“Ultimately any affordability assessment should revolve around affordability rather than income multiples, but of course some societies may wish to limit their exposure by applying this constraint as well.”
The term is for 24 months and clients must re-finance at the end of the product term.
For more information about self build mortgages from Saffron Intermediaries visit their website www.saffronforintermediaries.co.uk or call 01799 582885