Self Build Mortgage
To enable self-builders to build a new house or refurbish an existing structure to live in.
Also available to Custom Builders.
Our self-build mortgage includes flexible stage payments which can make it easier on cashflow during the construction phase. Unlike some other lenders who won’t release funds until certain stages are complete, this product allows you to draw-down funds as required to suit your unique needs (subject to underwriting approval).
A full breakdown of works, together with costings and architectural drawings, is required.
A variable rate of
(1.65% discount off our SVR)
variable for 24 months.
followed by a 1.00% discount off our SVR, which is currently 5.64%, to give a current rate payable of
variable for the rest of the mortgage.
The overall cost for comparison is
|Loan to Value (LTV)||Available up to:
65% of the purchase price,
100% of the build costs and a maximum
75% Gross Development Value. Minimum 35% deposit (or equity) of current site value.
|Arrangement fee||1.00% of the loan Other fees may apply.|
|Available for remortgages||Yes|
|Early repayment charges||None|
Your home may be repossessed if you do not keep up repayments on your mortgage
The following representative example is intended to allow you to easily compare products across lenders and does not reflect what your actual monthly payment or APRC could be. Please contact us if you have any questions regarding this.
A mortgage of £291,325 payable over 10 years, initially on a Discounted rate 0.20% above our Standard Variable Rate for 2 years to give a current rate payable of 3.99% and then on our current Standard Variable Rate Mortgage of 4.64% (variable) for the remaining 8 years, would require 24 monthly payments of £2,913.75 and 96 monthly payments of £2,986.59.
The total amount payable would be £359,901.56 made up of the loan amount plus interest (£68,611.56), an application fee of £300 and a redemption fee of £80.
The overall cost for comparison is 4.7% APRC representative.
Fees may differ to those shown in this representative example. Current fees can be found in our tariff of charges.
Additional product information
- This mortgage is for people looking to build or refurbish their own home and is available to first-time buyers.
- The loan must be fully serviced by your income.
- Outline Planning permission required at application.
- Full planning permission and building regulations required before Offer.
- Full breakdown of works together with costings and architectural drawings required.
- Funds can be drawn down in flexible stage payments to suit your needs (no more than one drawdown per month) subject to re-inspection.
- Retained funds must be drawn within the first 24 months or will be removed from the loan.
- A new home warranty/certificate is required.
- This mortgage cannot be transferred to another property.
- The interest rate charged will not fall below 2.00% (the minimum interest rate) at any point during the mortgage.
- The minimum term for this product is five years and the maximum term is 40 years.
- All applicants must be at least 21 years of age.
- Please view our mortgage services fees and our mortgage valuation fees.
This does not include all of the information you need to choose a mortgage. For full details please ask us about how you can get an illustration.