A new self build mortgage exclusive has been launched by lending packager 3mc with funding by Dudley Building Society.
The self build mortgage is available for purchase at a discounted rate of 4.69% up to 80% LTV (loan to value) on a maximum loan of £500,000 and minimum of £100,000.
This discount represents an 0.8% reduction on Dudley’s self build standard variable rate of 5.49%, and is an ‘exclusive’ product to 3mc, according to Doug Hall, director of 3mc.
As an example listed on 3mc’s website as to how the product works: a mortgage of £172,072 on a discounted rate of 4.69% for the mortgage term of 25 years would require 300 monthly payments of £975.08 plus one initial interest payment amount of £685.41.
Sam Ward, head of commercial at Dudley Building Society said: “Self build is a small but significant part of the market and one which requires specific expertise. We are committed to working with us to develop the self build proposition for the future.”
What is a Self Build Mortgage?
A self build mortgage differs from traditional mortgages, with funds released at key stages of the project, rather than a lump sum released upon sale of completion.
There are additional variations, so knowing more about how self build mortgages work can make the process easier when you come to applying for one.
Get an idea of how much you need to borrow by using our Build Cost Calculator to find out what your dream home is likely to cost. Remember to add on the cost of your plot and a healthy contingency fund to compensate for any issues you may encounter.