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Saffron introduces improved self-build mortgages

Brokers given wider customer options in increasingly popular specialist sector

Tuesday 9 April 2019 14:32 Press release

Self Build

Saffron Building Society has made several enhancements to its self-build mortgages in response to feedback from its members and broker contacts. The new products give intermediaries a much more flexible product to offer their customers. There are more options depending on the amount of capital customers have up front.

Quicker application process
Saffron’s years of experience helping self-builders have shown that the application process can be fraught with difficulty. Architectural drawings may need to be tweaked and alterations made with the process often feel exhausting. In the past, Saffron accepted applications only when the full planning approval was in place, which the society has reviewed and amended to make the process quicker.

Saffron now accept mortgage applications with only outline plans, the offer is sent once full planning permission has been secured.

New Options
Saffron has developed an option for self-builders who have less money up front to start their development. This is an alternative to its popular self-build mortgage with new Loan to Value options:

The self-build mortgage range now includes the following options:

Rate: 3.99% (SVR – 1.65%) discount for 24 months
LTV: Will lend up to:
– 65% of the purchase price
– 100% of the build costs
– A maximum of 75% of the gross development value
Arrangement fee: 1%
ERC: None
Repayment: interest only or repayment (if repayment chosen, interest only available during the build period up to a maximum of 24 months)
Loan amount: £30,000 up to £1m

Rate: 4.19% (SVR – 1.45%) discount for 24 months
LTV: Will lend up to:
– 80% of the purchase price
– 80% of the build costs
– A maximum of 80% of the gross development value
Arrangement fee: 1%
ERC: None
Repayment: interest only or repayment (if repayment chosen, interest only available during the build period up to a maximum of 24 months)
Loan amount: £30,000 up to £1m

Saffron’s new self-build product means customers don’t have to have as much deposit to secure the mortgage and don’t need as much money in place to fund the build costs. Brokers can find full product details on Saffron’s Self-Build pages. The Society also allows applicants to borrow more against the gross development value of their new home.

Unrivalled support as you build
There are several features of Saffron’s mortgages that particularly stand out in the market, the Society:

  • Can lend up to £1m on each mortgage, while many lenders firmly limit this to £500,000
  • Can lend up to 100% of the build costs
  • Offer flexible stage payments; funds are released in stages that can be tailored to each individual project

Anita Arch, Saffron’s Head of Mortgage Sales comments: “It’s not just our mortgages that set us apart. Our aim to provide unrivalled support along the way is just as important as providing helpful products. 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.”