Search the site

Self Build 1 Year Discount

Intermediaries > Products for Intermediaries > Self Build 1 Year Discount

Our Self Build 1 Year Discount Mortgage offers a discount of 1.59% off our standard variable rate (SVR), currently 5.34%, for a period of 1 year from completion, followed by our SVR applicable at that time. The interest rate charged won’t fall below 2%.

Try our mortgage Calculator
Our mortgage calculator is designed to show you how much you could potentially borrow and how much your monthly payments would be. The amount is based solely on your income without deducting household expenses and financial commitments. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Gross annual income





LTV Amount





Payment Terms





Product
Initial rate
Overall cost
for comparison
Max % LTV
Completion Fee
Mortgage Repayment
 
Self Build 1 Year Discount
Representative Example
3.75%
5.5% APRC
80%
£499
Product
Self Build 1 Year Discount
Representative Example
Initial rate
3.75%
Overall cost for comparison
5.5% APRC
Max% LTV
80%
Completion Fee
£499

Advance

Minimum £50,000: Maximum £375,000

Loan to Value (LTV)

Purchase and Re-mortgage maximum 80%

This maximum applies to the purchase / value of the land, whichever is the lower and to all stage releases – details available on request.

Term

Minimum 1 year: Maximum 35 years

Stage releases

The Society will release funds in stages during the build process subject to satisfactory confirmation from the valuer (after purchase of land if applicable).

Product Switch

On completion of the build (as evidenced by the final completion certificate), the mortgage product may be switched to another mortgage product within the Society’s prevailing range (subject to eligibility). The product switch fee relevant to the new mortgage will apply.

Completion of construction

The Society will allow a period of 2 years from first release of funds to final completion of the property.

Availability

This mortgage product is available for applicants wishing to;

  • Buy land and build a new property
  • Raise capital and build a property on land that they already own
  • Convert an existing structure, such as a barn into a home
  • Purchase an existing property, demolish and rebuild

Property must be for the applicants own primary residential use in mainland England and Wales (geographical restrictions apply) as an individual project and not part of a group development. All applications are subject to the Society’s self-build criteria, general lending criteria, property value and satisfactory status enquiries.

This product is a limited edition and cannot be guaranteed until an application has been received and accepted for processing.

Insurance

The arrangement of suitable buildings insurance is a condition of any mortgage offer made. For self-builds, the Society will require Site Insurance to be in place from Completion of the mortgage to completion of the build.

Important Information

The interest rate charged won’t fall below 2%.

Full Repayment

No early repayment charges apply.

Partial Lump Sum Repayment

Partial lump sum repayments of any amount are permitted.

 

Completion Fee

A fee of £499.00 is payable on the first release of funds.  This fee can be added to the loan subject to LTV limits.

Valuation Fee

A valuation for mortgage purposes will be required, the cost of which must be met by the applicant. See separate scale of fees. Where interim inspections by the Society’s valuer are required a re-inspection fee of £75.00 will be payable.

CHAPS Fee

On completion, the initial advance will be released to your appointed Solicitor by CHAPS (Clearing House Automated Payment Service). A fee of £30.00 is payable on completion and also for each CHAPS stage payment thereafter.  This fee can be added to the loan subject to LTV limits.

Mortgage Exit Administration Fee / Additional Fees

£120.00 inclusive of £35.00 Deeds Release Fee and £85.00 Sealing Fee. Additional administration fees may apply during the life of your mortgage. Details of these can be found in the Tariff of Charges leaflet.

The Loughborough mortgage service is tailored to each individual and offered on a fully advised basis where applicable. Our qualified advisers will spend time with you to understand your mortgage needs and financial circumstances before recommending the most suitable solution for you.

To get in touch with our mortgage team either telephone us on 01509 631950, email at mortgages@theloughborough.co.uk or request a call back here.