A number of new self-build mortgage products have been launched recently, suggesting growing confidence in the sector and increasing choice for consumers.
Getting your hands on funds as and when they’re needed is a common issue for many self-builders. Saffron seeks to overcome this with their newly launched interest-only mortgage.
Cash can be drawn-down as it’s required throughout the project, doing away the restrictions imposed by inflexible stage payments.
Available for a maximum period of 24 months, the product has a 4.2% interest rate, 1% arrangement fee and no early repayment charges. This frees up self-builders to move to a more suitable policy at any time, such as once your new home is habitable and you’ve sold your previous dwelling.
Saffron will lend up to its limit of 75% of the development value (consisting of 100% of the build costs and a maximum of 65% of the plot’s purchase price).
“We’ve listened carefully to feedback for self-builders, who tell us they want to keep mortgage costs to a minimum during the build period and that they also want the flexibility to draw down funds as and when required, rather than being tied to an inflexible stage payment system,” says Anita Arch, head of mortgage sales at Saffron. “This deal, which offers a combination of a discount, interest-only payments and drawdowns as required, ticks all the boxes.”
The Melton has added to its selection of self-build mortgages with a new family assist package, which is aimed at first time buyers. This mortgage considers up to four incomes from parents and grown-up children to a maximum loan size of £250,000.
The loan will cover 75% of the total cost of the self-build project. This innovative scheme allows lower income earners the possibility of building a home, which might otherwise be unreachable.
Comments are closed.