Newcastle Intermediaries is expanding its self-build range, by offering two new advance stage payment products.
This ‘Accelerator’ product is available as a tracker or fixed-rate deal and will be only be available through BuildStore Mortgage Services, and its intermediary arm BuildLoan.
Newcastle Intermediaries says it is designed to support borrowers who would benefit from having funds released at the beginning of the building phase.
The product is an 85 per cent LTV two-year base rate tracker at 5.29 per cent and has a £1,194 fee.
Borrowers can make overpayments of up to 10 per cent per year, and there are early repayment charges of 2 per cent until 31 July 2020, then 1 per cent until 31 July 2021.
Newcastle is also offering an 85 per cent LTV two-year fix at 5.59 per cent. This product has the same fee, overpayment, and ERC structure.
Newcastle Intermediaries customer director Stuart Miller says: “This advance stage payment product provides access to capital at an earlier stage, as we can advance up to 85 per cent of the phase costs.”
He says this can provide greater flexibility for self-builders.
BuildStore chief executive Raymond Connor adds: “The advance stage payment option comes into its own where the borrower is building using offsite construction methods, such as timber frame, SIPS panels, or indeed any building system which requires a substantial payment before the structure leaves the factory.”