The following example, although hypothetical, is typical of the type of situation facing many people who build their own homes:
George and Mary’s Situation:
For some people such as George and Mary, building their own home is the ultimate dream.
Self-build means they end-up with a home tailor made to their specific requirements with no need to compromise on any features!
However, self-build requires careful planning, not just in terms of house design but also financially. Building a home is a challenging logistical exercise which requires cash as well as building materials to be available at just the right time at each stage of the build programme.
Unfortunately, a traditional mortgage is unsuitable for self-builders such as George and Mary, because lenders won’t approve a mortgage on property which has not yet been built.
George and Mary, who have been granted planning permission on their new house, therefore need a lender who understands their special situation.
The Saffron Solution:
At Saffron Building Society we’ve been helping self-builders for many years and understand the specific financial challenges they face.
Specifically, self-builders require funds to be available that can be drawn-down at key stages throughout the build programme.
Our Self Build mortgage is available up to 65% of the purchase price, 100% of the build cost and 75% of the gross development value, up to a maximum loan amount of £500,000.
Funds can be drawn-down at key stages and there are no early repayment charges throughout the life of the loan.
Self-build mortgages are not only ideal for people such as George and Mary who want to build a home from scratch, but they’re also suitable for people refurbishing an existing property for owner occupation.
As with all our mortgages, each application is individually assessed by a skilled underwriter, who will take into consideration the applicants’ personal circumstances.