Hinckley & Rugby Building Society has launched a new mortgage for people building their own home.
The Self Build mortgage is available at up to 80 per cent Loan to Value (LTV) and interest is charged at the Society’s Standard Variable Rate, currently 5.64 per cent. The overall cost for comparison is 5.9 per cent APR.
The Society requires that the plans must be drawn up by an RIBA-qualified architect and submitted with the mortgage application along with costings and planning and building consents. The applicant must already own the land the new home will be built on.
The new mortgage is available both to direct customers and also via brokers. It comes with competitive fees - £295 for arrangment and £695 on completion. Property assessment fees are on a sliding scale that starts at £245 for houses valued at up to £200,000.
Because Hinckley & Rugby does not use automated underwriting, all lending decisions are taken by the Society’s staff. Credit scoring systems are not used – applicants with little or no credit history will not automatically be rejected.
Brokers – including directly authorised and appointed representatives – can easily access the Society’s underwriting decision makers to discuss individual circumstances.
Hinckley & Rugby chief executive Chris White said: “For a small but growing number of people, having a dream home designed and then building it is an increasingly popular choice. This mortgage is specially designed to help make that dream come true.”
Details of all the Society’s mortgages are at www.hrbs.co.uk