Self Build Mortgage Lenders

Earl Shilton Building Society is a specialist self build mortgage lender, to include (subject to all relevant planning permissions) land purchase, buying a property to renovate and barn conversions. Properties with an agricultural tie or Section 106 restrictions can be considered. We can also consider a remortgage for a self-build project that has already started.

Details of our self build mortgage scheme is below. It may be possible for this to be interest only until the property is completed and you move in. Also when you move in, we will look to switch you to a product with a lower rate if one is available at that time.

We can consider lending up to 75% of the value of the land and up to 75% of the value as the works progress.

  • Our discounted SVR mortgage schemes have their interest rate set at a specified “discount” level below our Standard Variable Rate (currently 5.24%) for a specific initial scheme period.
  • The initial scheme period for this product is 5 years meaning that the discount applies over a 5 year period. In this 5 year period the discount is 0.25% meaning you would pay a rate of 4.99% (5.24% – 0.25% discount). However, if the SVR rate increases you would have a higher interest rate than the rate quoted above and your monthly repayments would increase. Conversely, if the SVR rate decreased, you may have a lower interest rate than the rates quoted above and your monthly repayments may decrease. From Year 6 onwards the rate will be at the Society’s SVR meaning the rate then changes to what the SVR is at that time
  • The overall cost for comparison is 5.3% APRC representative*
  • Arrangement Fee of £1,125
  • 75% maximum loan to value at stage release, 75% LTV on land
  • There is a collar of 2.5% on this mortgage which means that the rate of interest charged will not fall below 2.5%
  • An Early Repayment Charge of 2% of the redemption balance is payable if the mortgage is redeemed or rearranged within the first 2 years
  • Available for purchase or remortgage
*Representative example:
Loan Amount£162,500
Arrangement Fee (added to loan)£1,125
Electronic Transfer of Funds (added to loan)£30
Total Amount of Credit£163,655
Term25 years
Property Value£350,000
Valuation Fee (including £25 valuation administration fee)£375
Re-inspection Fee£100
Solicitors Mortgage Fees (Estimate)£150
Deeds Release Fee£50
Sealing Fee£100
1 payment at the Society’s SVR less 0.25% (currently 4.99%)£1,513.57
Followed by 58 payments at the Society’s SVR less 0.25% (currently 4.99%)£955.76
Followed by 241 payments at the Society’s SVR (currently 5.24%)£976.63
Total Amount Payable£293,069.61
The Total Amount Payable is made up of the Total Amount of Credit, other fees payable (not added to the loan), plus the interest of£128,639.61

Your home may be repossessed if you do not keep up repayments on your mortgage

 

Additional Terms & Conditions

 

  1. The Society will require a first charge over the property
  2. At the end of the 5 year period the rate will revert to the Standard Variable rate, meaning the rate then changes to 5.24%
  3. Capital repayments and overpayments are permitted subject to a maximum of 20% per financial year of the amount advanced or transferred capital balance. Capital repayments are subject to a minimum of £1,000 over the normal monthly payment
  4. Following receipt of a regular overpayment or lump sum, the amount you owe, and so the interest you pay, is reduced immediately
  5. There is an Arrangement Fee of £1,125. This can be added but interest will be charged for the remaining term of the mortgage, or the fee can be paid on or before completion and interest will not be charged
  6. There is a collar of 2.5% on this mortgage which means that the rate of interest charged will not fall below 2.5%
  7. An Early Repayment Charge of 2% of the redemption balance is payable if the mortgage is redeemed or rearranged within the first 2 years
  8. Maximum loan to value 75%. Only 50% may be on Interest Only if there is a credible repayment strategy in place. The remaining amount must be on a Capital and Interest (repayment) basis
  9. 75% loan to value is the maximum advance on land and also on the value at stage releases
  10. Each stage release will require a revaluation at a cost of, currently, £100.00
  11. Copies of planning permission, detailed plans and full details of an acceptable warranty or Professional Certificate will be required along with a build schedule
  12. In the main, it must be built using standard construction materials, however, non-standard construction considered if it is BOPAS accredited (Such non standard construction has the following restrictions – Maximum LTV 75%, Maximum loan £250,000, Capital and Interest only and Maximum term of 25 years)
  13. Maximum mortgage amount £750,000
  14. There are other fees which could apply to your mortgage:
Electronic transfer of funds£30
Deeds Release Fee£50
Sealing Fee£100
Estimated legal costs in conjunction with a mortgage and estimated Valuation Fee

these have been included in the APRC calculation

 

Product Code 251 – Nov 19

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