What are Self Build mortgages?
Due to the operational challenges created by the COVID-19 pandemic, we have temporarily restricted our lending criteria and withdrawn a number of our mortgage products. Visit the FAQs for more information.
Important information: your mortgage and the stamp duty holiday
Ahead of the extended stamp duty holiday deadline on 30 June please be aware it is extremely unlikely any new mortgage enquiries will complete in time for you to be eligible. It is important you are prepared to pay for the stamp duty due, your solicitor will be able to provide full details including the amount.
For general information about stamp duty and the rates which will apply from 1 July please click here to visit gov.uk.
Self Build mortgages work differently from house purchase mortgages or remortgages. Rather than giving all the cash upfront, we release it in stages as your build progresses. These stages may include buying the land, right up to decorating the interior – and all things in between. To find out more about our flexible self build mortgages, please contact us and we will be happy to answer any queries.
Building your home can be an incredible experience and at the same time, a challenging one. It is a memorable experience that requires hard work and commitment. So, finding the right Self Build mortgage with great service and less hassle is essential!
Self Build Mortgage Features
Flexibility
Rather than giving you all of your funds upfront, we release the money at different stages of your build so you don't pay interest on the whole amount all at once.
Early repayment charges
You can overpay by up to 50% with our mortgages and not incur any early repayment charges. See the full product details to check this and other charges which apply.
A good credit history
We don't use automated credit scoring to assess your suitability, but we do expect a good credit history.
Unusual construction
We know houses, just like people come in all shapes and sizes and materials. We can consider a range of construction types as well as the 'yet to be built'. Note for builds utilising modern methods of contruction (often termed MMC) we will need the scheme to be BOPAS registered.
Our self build mortgage features
Self Build 3.99% 2 Year Discount Rate 80% LTV
- VARIABLE RATE currently 5.24% with a discount of 1.25% until 2 years from completion date, then reverting to 4.24% (Ipswich SVR minus 1%) for 36 months then changing to Ipswich Standard Variable Rate (currently 5.24%)
- 4.9% APRC
- For purchase or remortgage up to 80% LTV
- Available for self build, conversion and renovation
46060, 46061
| Completion Fee | Application Fee (Payable with application and non-refundable) | Valuation Fee (Payable with application) | Higher Lending Charge | CHAPS (Fee for transfer of funds to solicitor) | Maximum Loan Amount |
|---|---|---|---|---|---|
| £1,000 | £199 | Based on property valuation | - | £35 | £1m |
No charge for overpayments of up to 50% of original loan amount
Early repayment charge period ends 12 months from date of completion
Fee-free overpayments up to 50% of the loan
Redemption - early repayment charge is 3% for 12 months followed by 0% for 12 months
To apply, please speak to one of our expert Mortgage Consultants, based in Ipswich, on 0330 123 0773 - we're happy to discuss your application over the telephone or, if you'd prefer, we can arrange to meet with you at one of our 9 branches across Suffolk.
In the meantime, you may find it useful to look at our mortgage calculator to get an idea of what your monthly payment may be.
To apply for this product visit our Apply and Track section, or give our intermediary sales team a call on 0330 123 1073.
Representative example
A mortgage of £330,000.00 payable over 25 years on our Standard Variable Rate currently at 5.24% with a discount of 1.25%, giving a current rate payable of 3.99% for 24 months, then on our Standard Variable Rate currently at 5.24% with a discount of 1%, giving a rate payable of 4.24% for 36 months (please note that the rate payable will never fall below 3%). This will be followed by our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term. This would require 24 monthly payments of £1,745.50, followed by 36 payments of £1,788.36, followed by 240 payments of £1,946.18. The total amount payable would be £573,940.16 made up of the loan amount plus interest (£242,321.16), an application fee of £199, a completion fee of £1,000, a valuation fee of £290, a mortgage funds release fee of £35 and a mortgage exit fee of £95. The overall cost for comparison is 4.9% APRC representative.
Self Build applications are accepted on a full status basis
- The property/build must be supervised by a qualified person
- There must be Detailed Planning Permission and Building Regulations in place
- The Property must be completed within 24 months of the initial advance
- The total advance (at any time) will not exceed 80% of the current value of the land or property under construction
- Maximum advances must also be in accordance with product chosen (ie; some products are maximum LTV 80%)
- Stage Release fees – the Society will charge up to £100 for each stage payment made
- This fee includes the cost of the Valuer calling to re-inspect the property and the CHAPS fee
- Self build borrowers who have not seen a reduction in household income since applying for their self build mortgage, and who have supplied the property Completion Certificate to the Society, will be eligible to automatically switch to Capital & Interest on a new 2 year residential mortgage scheme.
