BuildLoan has worked closely with Nottingham Building Society to design two new self and custom build mortgage products that have no early repayment charges.
Both products are two-year discounted rates based on arrears stage payments available on an interest-only basis during the build. They have a maximum LTV of 80% with land and build costs also up to 80%. Loans start at £50,000 up to £600,000, or a maximum of £500,000 if interest-only is taken for the whole term of the mortgage.
The first product has an initial pay rate of 3.99% for two years, which is a 1.75% discount from The Nottingham’s variable rate, reverting to 4.24%. The completion fee is £1,499 and there is no application fee.
The second product has an initial pay rate of 4.14%, representing a 1.60% discount, reverting to 4.24%. It has a completion fee of £499 with no application fee.
Both products also have the advantage of no lender re-valuation fees and no lender stage release fees/telegraphic transfer fees.
The Nottingham’s deals are available to professional contractors and employees with high amounts of commission. In addition, for self-employed clients, lending can be based on the latest year’s income in some circumstances.
Chris Martin, Head of Product Development and Underwriting at BuildLoan, commented: “These ERC-free products provide flexibility to clients and complement The Nottingham’s comprehensive lending policy. The products are available to the increasing numbers of self and custom builders using more efficient modern methods of construction to build their home.”
Nicki Warren-Dean, Head of Intermediaries at The Nottingham, said “Self and custom build is an increasingly important part of the new build housing sector. We have worked with BuildLoan to create a product range and lending policy to meet the needs of a wide range of customer circumstances.”