Furness Building Society in partnership with Build Loan is offering self-builders an advance stage payment mortgage priced at 4.99% for two years.
The product will allow intermediaries to offer clients a way to manage cashflow during their self-build project. Furness has also enhanced its lending criteria and product features as part of this launch.
The advanced stage payments are 80% loan-to-value based on the land purchase price, 85% loan-to-cost for the intermediary stages of the build and 80% LTV of the completion value. Money can be released at six points; land purchase, foundations, wallplate/timber frame, wind and watertight, first fix, second fix and completion.
The minimum loan is £50,000 and the maximum loan is £500,000 with early repayment charges of 2% for two years. Borrowers can choose interest only for the build period which is a maximum of two years.
Euan Ballantyne, head of products at Furness, said: “We believe our products are competitively priced and have no doubt that, by working together with BuildLoan, we can provide intermediaries with an exclusive mortgage solution designed specifically for clients who are building their own home, or converting or renovating an existing property.
“We have seven years’ experience in this specialist market and believe that by offering advanced stage payments we can help self-builders with their cash flow, thereby making the homebuilding process quicker and easier for them.”
Information from: www.mortgagesolutions.co.uk