"Brokers handling their first self-build mortgage enquiries from clients have been surprised by the product criteria, which can appear quite dissimilar than that of a typical mortgage product."
The new large loan products are available for projects between £1m and £2m and are in addition to the current self-build mortgages offered by the mutual.
Product one offers 65% of the purchase price and 100% of build costs with a 75% max Gross Development Value at a two-year discounted rate of 4.49%.
The second product is 80% of the purchase price, 80% of build costs with an 80% max Gross Development Value at a 4.69% discounted rate.
Saffron will be accepting custom build and first-time buyers covering a variety of scenarios and the products are free from ERCs.
Earlier this week, the Government launched a new 'Help to Build' low deposit mortgage scheme, supported by £150 million in funding, to help more people build their own homes.
Tony Hall, interim head of mortgage sales at Saffron, commented: “We are delighted to be announcing these two new self-build products to intermediaries and that we are able to further support them, and their clients, with large self-build aspirations. Our award-winning self-build products have always been a significant part of our offering as a society, so this is the natural next step.
“However, brokers handling their first self-build mortgage enquiries from clients have been surprised by the product criteria, which can appear quite dissimilar than that of a typical mortgage product. But it is all about understanding the process and embracing it. We have tried to make this as simple as possible to encourage intermediaries to promote their self-build financing credentials as interest in building our own homes in the UK continues to increase.”
