In the first of our new Mortgage Monthly series we investigate the latest mortgage availability updates for self builders and renovators across the UK.
Self build mortgages differ from traditional mortgages: whereas 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.
Hinckley & Rugby Launches New Self Build Mortgage
A new self build mortgage is available through Hinckley & Rugby Building Society, which has been launched through BuildLoan.
The higher LTV (loan-to-value) mortgage is a two-year discount product charging an initial interest rate of 4.99%.
Hinckley & Rugby will lend up to 85% on both the value of the land and the cost of the build. The maximum LTV of the completed home is 75%.
There is an application fee for self builders of £199 and a completion fee of £800.
New Mansfield Range in Scotland
Self builders in Scotland now have access to a new range of mortgage products via Mansfield Building Society.
Mansfield has launched its residential mortgage proposition in Scotland which includes prime residential, self build, retirement interest-only and versatility products.
Mansfield will also consider unusual property types among its applications for versatility products.
Green Finance Strategy Backed
The Melton Building Society has pledged its support for the Green Finance Strategy by offering an Eco Self Build mortgage, designed to encourage investment in energy efficient features in self build homes.
The mortgage offers a 0.50% saving against the Melton’s standard self building mortgage rates, and is available for self build projects, custom build, renovations and conversions up to 75% LTV.
The Green Finance Strategy was published by the government in July 2019 to recognise the finance sector’s importance in recognising eco-friendly behaviour.