Saffron Building Society has made a host of changes to its self-build mortgage range, following discussions with intermediaries and the society’s members.
The mutual said it wanted to give brokers a more flexible product to offer borrowers, including for borrowers who have less money up front to start the development.
As a result, the range now includes a discounted rate mortgage at SVR -1.65 per cent (a current pay rate of 3.99 per cent) which will lend up to 65 per cent of the purchase price, 100 per cent of the build costs or 75 per cent of the gross development value, with a 1 per cent arrangement fee and no early repayment charges.
Saffron has also moved to accept applications when the borrower only has outline plans, with the offer sent once planning permission has been secured, in a bid to speed up the process. Previously it would only accept applications once full planning approval was in place.
Anita Arch, head of mortgage sales at Saffron, said the mutual was clear that offering proper support was just as important as providing helpful products.
She continued: “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.”