Saffron Building Society has modified its self-build mortgage offering.
Launched at the start of this year, the self-build mortgage, available on a 24-month discount of 1.65 per cent, giving an initial rate of 3.99 per cent, has had its LTV lowered from 75 per cent of the purchase price to 65 per cent, and the building costs LTV set at 100 per cent.
The lender has also added an option to borrow 80 per cent of the purchase price and 80 per cent of the build costs at a 24-month discount of 1.45 per cent, giving an initial rate of 4.19 per cent.
Both options allow for up to £1m in loans, charge an arrangement fee of 1 per cent, and come with no ERCs.
Furthermore, Saffron says that it now accepts applications with only outline plans, with the offer being sent once planning permission has been achieved.
Saffron head of mortgage sales Anita Arch says: “We have a team of specialist underwriters who have detailed knowledge of self-build projects and will apply this to each application which will be manually checked.
“They will take time to review the details and attempt to do all they can to provide the funds your customers need for their new home.”