In a welcome piece of news the Saffron Building Society has reported a 144% increase in its self-build completions compared to the same period in 2019. The increase in enquiries for the mortgage products spans a variety of models, including everything from first time buyers looking to build their way onto the market to large self build and conversion projects.
Colin Field, CEO of the Saffron Building Society, said: “We are delighted to see that the interest in self-build mortgages is on the increase. With the fluctuations in the market, it is a really feasible option for first-time buyers as a complete build will face too many financial changes – just material cost.
“Another positive is the amount of people upgrading current property stock. Bringing them in line with current regulations, extending them and making them habitable and then marketable should they choose to sell.
“A self-build might seem a little daunting, especially for a first-time buyer. But, the structure of the lending is so flexible, releasing funds at pre-set stages of the development to assist with cashflow, it is a very supportive way to get on the market. It can be an exciting and rewarding path to your first home; or update, grow or improve your current home.”
Nottingham Building Society returns to self build market
In another move, the Nottingham Building Society is reintroducing its self-build mortgages as part of its business returning to normal following the impact of the Coronavirus. From the 15 June, its two 8% loan-to-value (LTV) products are once again available for self-builds, conversions and renovation projects.
Its two-year fix of 4.49% is joined by a two-year discount of 3.9% variable, both with a £1,499 fee.
Nikki Warren-Dean, head of intermediary sales at The Nottingham, said: “Bringing back self-build mortgages is the latest stage of our phased product range return, having recently reintroduced 80 per cent LTV residential and 75 per cent buy-to-let mortgages.
“Following the resumption of physical valuations we are also pleased to have added lending on renovations, in response to feedback from brokers and their clients.”