Construction financing news: Buckinghamshire Building Society provides self-build mortgage loans of up to £1 million
Buckinghamshire Building Society has announced improvements to its self-build mortgage products, aiming to help more people realise their home-building dreams. The society now offers two products: the Self Build Advance and the Self Build Arrears mortgage, both available through its BuildLoan service.
The Self Build Advance mortgage product releases loan funds in phases, prior to each major stage of the build, based on the valuer's estimate. On the other hand, the Self Build Arrears mortgage offers stage payments only after each stage is completed and assessed. Both products are designed to cater to self-builders in England and Wales.
One of the key features of Buckinghamshire Building Society's self-build mortgages is the absence of formal property valuations and loan-to-value (LTV) limits during the build. The valuation is agreed at the application stage, and each application is reviewed individually, including a thorough review of expected building costs to prevent the borrower from running out of funds during construction.
The society has also increased the maximum loan limit for its self-build mortgages to £1 million, a significant increase compared to the maximum loan limits offered by some competitors. Furthermore, Buckinghamshire Building Society has reduced its self-build mortgage rates. The Self Build Advance now carries a rate of 6.49%, while the Self Build Arrears stands at 6.35%.
However, it's worth noting that other lenders also offer similar self-build mortgage products, and some may offer lower rates. For instance, Hanley Economic Building Society and Penrith Building Society offer rates as low as 5.75% and 5.99% respectively.
Buckinghamshire Building Society's head of mortgages, Claire Askham, anticipates steady growth in the self-build sector due to the increased focus by the new Government on building new homes. She expressed her enthusiasm about the society's role in helping more people achieve their home-building dreams with these improved mortgage options.
In addition to the self-build savings mortgages offered by Buckinghamshire Building Society, other lenders like Bausparkassen such as Schwäbisch Hall, LBS, and Wüstenrot also provide similar products. These typically have interest rates ranging from about 2% to 4% and maximum loan amounts depending on the lender, often up to 100,000 to 300,000 euros.
As always, it's essential for potential self-builders to research and compare various mortgage options to find the best fit for their specific circumstances.
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