Saffron Building Society are today announcing the launch of two new Self-Build Large Loan products available to intermediaries. The new, large loan mortgages are in addition to the current self-build mortgages offered by the mutual but are related to projects over £1m and up to £2m.
The LTV criteria are different across the two products. Product one offers 65% of the purchase price and 100% of build costs with a 75% max Gross Development Value at a 2-year discounted of 4.49% (SVR -0.9%), whilst product two is 80% of the purchase price, 80% of build costs with an 80% max Gross Development Value at a 4.69% discounted rate (SVR -0.7%). Unusually for this type of lending, Saffron will be accepting custom build and first-time buyers and covers a variety of scenarios and are free from ERCs on both new products.
Tony Hall, Head of Mortgage Sales at Saffron discusses the products: “We are delighted to be announcing these two new self-build products to intermediaries and that we are able to further support them, and their clients, with large self-build aspirations. Our award-winning self-build products have always been a significant part of our offering as a society, so this is the natural next step.
“However, brokers handling their first self-build mortgage enquiries from clients have been surprised by the product criteria, which can appear quite dissimilar than that of a typical mortgage product. But it is all about understanding the process and embracing it. We have tried to make this as simple as possible to encourage intermediaries to promote their self-build financing credentials as interest in building our own homes in the UK continues to increase.”
The UK sits behind many countries worldwide in our interest to build our own homes. However, over the last decade particularly this has increased and as considerations around ecological building and owning greener homes has risen with millennials and Gen Z, it is only likely to continue to elevate in the years to come as the country focusses on their own carbon footprints.
To celebrate the launch, the team from Saffron for Intermediaries will be dedicating the next SFI Live in the series to self-build financing. The one hour live and interactive webinar will focus on the product criteria, the different types of build and how they can be financed. Brokers are encouraged to join and submit questions pre-webinar and during the live broadcast.
Tony continues: “Holly and I are teaming up again this May to discuss the self-build product range, as a whole and including the new mortgages. We intend to answer questions from brokers about the process and give them the tools they need to be intermediary experts in this area. We would request brokers submit questions ahead of the live broadcast, and during, to make sure we can identify any gaps in education about the self-build proposition.”
“We are delighted the SFI Live series remains so popular and following feedback we are pleased to be moving to Wednesdays. During the pandemic, working patterns have changed and Fridays became impossible for many. We look forward to seeing everyone on 19th May.” Tony concludes.
The SFI Live series - following viewer feedback - has been moved to 11am on Wednesdays, once a month from May. The self-build webinar will be live at 11am on Wednesday 19th May 2021. It is free to sign up to view live, and registrants will have access to an on-demand version later that day.