A Spring Sale on our self-build mortgages is now underway, which includes a 1% rate discount and fees cut in half from 2% to 1%
Spring is in the air and it’s traditionally a time when people start thinking about visiting estate agents and a possible house move.
But not all. For some aspiring homeowners, Spring is the time of year when they want architects and builders to burst into life and start constructing their dream home.
A growing market
To date the self-build housing market has only been relatively small, but the government’s desire to see it increase substantially in the future could give self-build mortgages a significant boost.
Approximately 12,000 self-build homes are constructed each year in the UK, but the government has said it wants that number to double over the next 10 years.
Pie in the sky ambitions?
Probably not. The Germans, for example, build approximately 100,000 new self-build or custom build homes every year, which meets approximately 50% of their new housing requirements.
This is why the government is doing more than simply talking about the opportunity. In October last year, a new piece of legislation came into effect in England which states that local authorities must grant planning permission in order to satisfy demand from self-builders for ‘development ready’ plots in their area.
Specialist mortgages for self-builders
Although many self-builders use some of their own capital to fund their build projects, many also use specialist self-build mortgages as well. Self-build mortgages enable money to be released in stages throughout the build project and some deals, such as those available from Saffron, can also be used to finance the purchase of the building plot. We are also happy to help finance other building schemes such as barn conversions, property refurbishments and knock-down and rebuild projects.
To help budding self-builders get their projects off to a great start, we’re delighted to announce a Spring Sale on our specialist self-build mortgages.
We’re offering a 1% discount off the mortgage rate, meaning variable rates starting from just 4.59% on an interest only or repayment basis, for a period of up to 2 years.
We have also cut the fee in half from 2% to 1% for the duration of the sale.
Once the build has been completed, borrowers can apply to switch to any of our other residential mortgage products available at the time.
We’ll consider covering the full cost of the work subject to a maximum 75% of the gross development value. Payments will be released in stages that can be tailored to each individual project.
All applications are individually assessed by a skilled underwriter and our self-build mortgages are available from £30,000 up to £500,000 and applications of up to £1 million will be considered on a bespoke basis.