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.

Who is this product suitable for?

• First Time Buyers
• Existing Homeowners looking to build a new main residence
• Self Build
• Customer Build
• Self Employed borrowers with a minimum of 2 years' accounts*
• Contractors with a minimum of 2 years' continuous contracting history*

*In case of a joint application, both borrowers must eligible. 

Product Details

• Repayment, Interest Only and Part&Part mortgages available 
• Maximum loan size: £4,000,000 up to 80% LTV
• Up to 5.5x LTI
• ERC free options available 
• For products with ERCs, overpayments of up to 10% per annum of the original loan amount are allowed without penalty. If the build completes before the 24-month term, we will waive the ERC in instances where the borrower switches into a Saffron retention product

Additional Details

• 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
• 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. 
• For ground up developments, a minimum contingency of 10% must be shown within the costings. This can be reduced to 5% in case of JCTs and subject to underwriting assessment. 
• 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.
• We reserve the right to instruct that a Quantity Surveyor be appointed. The customer would be responsible for appointing the Quantity Surveyor, covering all the costs involved and would also be required to provide the Society with copies of the interim reports from the Quantity Surveyor at each drawdown request
• A progress report and/or quantity surveyor report will be required at each drawdown before funds will be released
• Retained funds must be drawn within the first 24 months or will be removed from the loan
• For variants with an ERC, if the build completes before the 24-month term, we will waive the ERC in instances where the borrower switches into a Saffron retention product.
• We reserve the right, over the life of the project, to appoint an industry professional, at the customer’s cost, to manage and oversee the completion of the project.
• For ground up builds, an acceptable warranty/certificate is required. Please see our criteria for a list of acceptable providers. 
• A PCC may be required for a renovations/conversions.