Buckinghamshire Building Society has reduced rates on its self-build range by up to 25bps and increased the maximum loan from £500,000 to £1m.
The mortgage product is available through self build specialist BuildLoan.
Following these rate changes, the Self Build Advance two-year discounted product will now charge 6.49%, down from 6.59%. There is also a Self Build Arrears option, again a two-year discounted rate, charging 6.35% (down from 6.49%).
Buckinghamshire BS also offers a Self Build Advance option with no ERCs. This two-year discounted rate is now priced at 6.55%, down from 6.79%.
These mortgage are available on properties in England and Wales. All cases are assessed on an individual basis and are manually underwritten.
The products have been designed with BuildLoan, to ensure brokers remain fully compliant with the Consumer Duty rules. This includes professional review of expected build costs on every application, to reduce the risk of under-budgeting and running out of money later on. Staged released of funds are agreed as part of the application, with no formal valuation or LTV limits imposed during the build. This gives clients peace of mind that they will receive the money needed to cover costs at each stage of the project. In addition clients also receive a cashflow analysis, which will include project costs, the staged release, plus their own available funds.
Buckinghamshire Building Society, head of mortgages Claire Askham says: “With the increased focus by the new Government on building new homes, we anticipate steady growth in the self-build sector. By reducing rates, plus also doubling our maximum loan size, we hope that this enables more borrowers to achieve their home building dreams.”
BuildLoan head of products Chris Martin says: “Affordability continues to be challenging [in this secctor]. As well as lower rates to reduce monthly costs, these new BuildLoan-exclusive products from Buckinghamshire include our complete package of Consumer Duty solutions which mitigate the risks of poor outcomes and foreseeable harm by ensuring the project has been properly budgeted and the clients will get the money they need at the right time to complete their build successfully.”.
Buckinghamshire Building Society is hosting a webinar for brokers on August 14 on the self build sector with a number of other societies. Those interested can click here to register.
