Saffron Building Society has released a new self-build mortgage product.
The product is a two-year 75 per cent LTV at 3.99 per cent, for purchase and remortgage.
The new self-build mortgage has a maximum loan of £1m, no early repayment charge or maximum age limit and a 1 per cent arrangement fee.
According to the building society, the average savings for ‘self-builders’ are between 15 per cent and 20 per cent compared to buying a similar property.
Features of the new product include consideration of up to five times an applicant’s annual income, availability to first-time buyers and flexible stage payments.
The product is manually assessed by a specialist self-build underwriter on application and custom builds are accepted.
Saffron Building Society head of mortgage sales Anita Arch says: “The popularity of self-builds is noticeably growing with more and more support available to turn ideas into reality.
“Self-build projects don’t need to be constructed from scratch. They can be renovations to an existing property, or conversions to a barn, basement, loft or garage.
“In essence, any large extension could be classified as a self-build construction.”