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Self-Build and Custom Build

Available to self-builders who want to buy a plot of land to build a new house or refurbish an existing structure for their own occupation.

Does your client dream of starting from scratch, buying a plot of land and building their own home? Or perhaps they're looking to find a place that needs a complete refurbishment where they can put their own stamp on it. At Saffron, we understand dreamers and that is who our self-build mortgage is designed for.

Because it’s likely that a self build project will take shape over a period of time, we’ll release the funds in stages, in line with the progress of the build. An added benefit is that we allow the option to repay interest-only until the project is completed.

What is custom build?

Custom build homes are self-built homes that are facilitated by a professional developer. They offer the chance to have a unique property that suits an individual’s lifestyle and preferences but minus the high degree of involvement associated with traditional self-builds. Custom building can describe a single one-off home commissioned by an individual and built by a developer, or a group of homes built by a developer but offering the future occupants the chance to tailor the design.

Product Criteria

  • Minimum age 21
  • Minimum term 5 Years
  • Maximum term 40 Years
  • Owner Occupied only
  • Minimum loan size: £30,000. Maximum loan size: £1,000,000. Loans over this are priced on a bespoke basis and have restricted LTV’s
  • Interest only or repayment
  • Interest only subject to meeting lending policy and having an acceptable repayment strategy. If taken for the full term of the mortgage, available to a maximum 70% GDV
  • If the mortgage is taken out on a repayment basis, interest only is available for the build period up to a maximum of 24 months. You must explain the consequences of this to your client and evidence this in your suitability letter
  • Available for custom-build
  • Available for first time buyers
  • Loan must be fully serviced by applicants’ income
  • Outline planning permission at decision in principle 
  • Full planning permission needed before going to valuation
  • Full breakdown of works together with costings and architectural drawings required
  • Funds can be drawn down in flexible stage payments to suit the clients’ needs (no more than one drawdown per month) subject to re-inspection. Re-inspection fees can be found on our website. The flexible stage payments will be taken in arrears.
  • Retained funds must be drawn within the first 24 months or will be removed from the loan
  • A new home warranty/certificate is required from one of the following:
    • NHBC
    • Premier Guarantee
    • BLP
    • ICW Limited
    • Buildzone
    • LABC

Self-build

Self Build Mortgage

Initial rate

4.19% (variable)

Product period

24 Months

then changing to our SVR minus 1.00%

4.39%

Deposit required

20.00%

The overall cost for comparison is

4.70% APRC

Arrangement fee

1% of Loan

Self Build Mortgage

Initial rate

3.99% (variable)

Product period

24 Months

then changing to our SVR minus 1.00%

4.39%

Deposit required

35.00%

The overall cost for comparison is

4.60% APRC

Arrangement fee

1% of the loan

Your home may be repossessed if you do not keep up payments on your mortgage