Saffron For Intermediaries has launched a new mortgage product to replace its existing deals for self-builders.
The new self-build mortgage is provided on an interest-only basis for 24 months and is available at a discount rate of 4.20%.
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Saffron will lend up to 65% of the purchase price of the plot, 100% of the build costs, and a maximum of 75% of the gross development value.
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.
Anita Arch, Head of Mortgage Sales at Saffron, said: “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.
“This deal, which offers a combination of a discount, interest-only payments and drawdowns as required, ticks all the boxes. 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.”
Information from: http://www.financialreporter.co.uk