Building Society Launches Self-build Mortgage Deal

If you are thinking about building your own timber frame home, financing such a scheme is probably both your first concern and hurdle to overcome. When you are mortgage-free, a self-build property is straight-forward, however, when relying on a mortgage, things can get a little bit more complicated.

When shopping around for a self-build mortgage, one to certainly consider is Ipswich Building Society, who have just introduced a new specialist product, according to Mortgage Strategy.

Available for new builds, conversions and rebuild projects, the mortgage has an interesting quirk in that you can overpay by up to 50 per cent without receiving any penalties, repaying in the second year of the mortgage.

It’s available on a loan-to-value rate of 80 per cent on loans up to £500,000, with a rate of 4.1 per cent, discounted from the bank’s standard variable rate.

Ipswich Building Society chief executive Richard Norrington described why he felt it was important for the mortgage offer to move on from a three per cent early repayment charge: “We’re keen to continue supporting self-build borrowers, a typically under-served element of the mortgage market, by lowering costs and providing attractive rates with penalty-free switching and early repayment options.”

As a potential self-builder, Ipswich Building Society extols the virtues of a smaller lender, saying that the flexible, manual underwriting approach means that lenders can cater to ‘mortgage misfits’ who don’t meet the same criteria as the majority of mortgage cases.

There are fees involved in the mortgage, including a tiered valuation, a completion fee of £1,000, as well as an application and a secure CHAPS payment charge.

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