Our Self Build 2 Year Discount Mortgage includes a discount of 1.39% from the Society’s standard variable mortgage interest rate (SVR) for 2 years giving a current rate payable of 6.55% which will not go below a floor of 3.50%. At the end of the 2 years the Society’s prevailing standard variable mortgage interest rate (SVR) will apply, currently 7.94%.
for comparison
Self Build 2 Year Discount
Representative Example
6.55%
8.1% APRC
80%
£499
Further information
Advance
Minimum £50,000: Maximum £500,000
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 2 years: 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.
Full Repayment
An early repayment charge equivalent to 0.50% of the outstanding balance applies if the loan is repaid in full in the first year, and 0.25% in the second year. Thereafter the Society’s standard repayment charges will apply – see Tariff of Charges. The early repayment charge may be refunded if the borrower(s) take out a new mortgage with the Society subject to meeting the Society’s criteria.
Partial Lump Sum Repayment
Up to 10% of the advanced amount may be repaid in any year of the product rate period without charge. Repayments made above the 10% limit will be subject to a charge of 0.50% in the first year and 0.25% in the second year.
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 £120.00 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 £10.00 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
£85.00 Redemption Administration 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 [email protected] or request a call back.
