Saffron For Intermediaries has a new self-build mortgage product to replace its existing deals.
The new mortgage is interest-only basis for 24 months, after which the borrower can switch to another Saffron mortgage or switch to another lender.
Borrowers can draw-down funds as required and are no longer restricted by inflexible stage payments.
Saffron will also accept applications from first-time buyers.
The new self-build loan rate will be 4.20 per cent, representing a discount of 1.19 per cent from Saffron’s SVR.
The LTV can be up to 65 per cent of the purchase price of the plot, 100 per cent of the build costs of up to 75 per cent of the gross development value.
The loan has a 1 per cent arrangement fee and no early repayment charges.
Saffron will lend between £30,000 and £1m.
Saffron head of mortgage sales Anita Arch says: “We’ve listened carefully to feedback for self-builders, who tell us they want to keep mortgage costs to a minimum during the build period and that they also want the flexibility to draw down funds as and when required, rather than being tied to an inflexible stage payment system.
“We will also accept applications from first-time buyers, which will be of interest to offspring who plan to build on spare land that may have been released by their parents.”