"Partnering with BuildLoan will enable us to better serve the intermediaries advising the growing number of self-builders"
The higher LTV mortgage is a two-year discount product with an initial 4.99% interest rate.
The money will be advanced in five stages, with Hinckley & Rugby lending up to 85% of the value of the land purchased and then up to 85% of the cost of the build. The maximum LTV of the completed home is 75%.
Carolyn Thornley-Yates, head of sales and marketing at Hinckley & Rugby, said: “We’ve been offering self-build mortgages since 2013 so have the know-how to help self-builders achieve their dreams.
“Partnering with BuildLoan will enable us to better serve the intermediaries advising the growing number of self-builders, many of whom need higher LTV borrowing to create the home they desire.
“They can borrow up to £500,000, we’ll pay the cost of an additional security fee and we will apply our manual underwriting to carefully assess each application, working with intermediaries to fully understand all aspects of the case.”
Raymond Connor, BuildLoan CEO, added: “I am delighted that Hinckley & Rugby Building Society has joined our lender panel with the launch of a new mortgage product for self build. Notwithstanding the current political unrest, the self and custom build sector is growing and we believe 2020 will see unprecedented demand.”
