In this Mortgage Monthly series, we’ve investigated the latest mortgage availability updates from October for self builders and renovators across the UK.

Self build mortgages differ from traditional mortgages: where a traditional mortgage will release funds in one lump sum upon completion, self build mortgage funds are released at key stages throughout the build project

There are other additional variations, so knowing more about self build mortgages can make the process easier when you come to it. 

Hanley Economic Provides an Alternative

Staffordshire-based Hanley Economic has introduced a part-complete self build mortgage project to help projects which are already underway. 

This means that borrowers can use this product rather than using a specialist lending solution such as bridging finance. This can be useful if, for example, an individual has used their savings in the build but is then presented with unexpected costs and needs supplementary financial support. 

The product offers a 3.25% two-year variable discount up to 60% LTV (loan to value) and a maximum loan amount of £500,000. The product does not have a minimum term and is penalty free. 

David Lownds, head of marketing and business development at Hanley Economic, commented: “Our new part-complete self build product has been carefully created to provide additional choice and flexibility for self builders, and acts as a competitor to alternative solutions such as bridging finance.”

Swansea Building Society’s New Launch

Swansea Building Society has launched new products aimed at helping self builders and those renovating an existing property. 

The products, which are purchasable in Wales and the Welsh border counties, are available for the first 24 months on interest only terms, swapping to full repayment terms from the 25th month. 

These products are available in Wales / the Welsh border counties only and for the first 24 months are available on interest only terms swapping to full repayment terms from month 25.

The new mortgage products have been introduced to meet the demands of the Society’s customers across a number of areas.

Alun Williams, Chief Executive of Swansea Building Society, said: “We strive to always deliver the best products possible to our customers and these new mortgage offerings have been carefully designed to do just that. Our mortgage managers take the time to really understand the needs of our customers in more niche circumstances, such as those who are self-employed and therefore have a different income structure, or those looking to build their own property.”

Earl Shilton Expands Property Criteria

Earl Shilton Building Society (ESBS) has increased its criteria to self build projects following a series of amendments to its mortgage criteria. 

The Leicestershire-based firm has raised its standard maximum mortgage loan amount from £550,000 to £750,000, which applies to self build projects of standard construction, and to properties that carry a Section 106 restriction or an agricultural tie, where there has been a lower maximum limit of £450,000.

Other new ESBS criterion includes a max loan amount of £250,000 and a max LTV of 75%.

Paul Tilley, chief executive of ESBS, said: “We are proud to be setting ourselves further apart from a number of our competitors by unveiling a range of enhancements to the service we provide to our mortgage customers.”

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