The Buckinghamshire Building Society has broadened its existing self build mortgage offering to intermediaries, with the launch of two advance stage payment mortgages, exclusively available from BuildLoan. The launch of these new products coincides with the 20th anniversary of advance stage payment mortgages.
The Buckinghamshire Advance Self Build Product has a rate of 4.99% and offers up to 80% on land and up to 80% on build costs. The Advance Plus Self Build Product by comparison has a rate of 5.09% and offers up to 80% on land but provides up to 85% on build costs. Both products have a maximum loan to value of 80%.
Rachel Pyne commented “We’re delighted The Buckinghamshire Building Society has added advance stage payment mortgages to its existing product range – giving more self builders the benefit of improved cashflow with upfront payments before each stage of their build.”
She added “Receiving cash upfront means clients choosing an offsite produced timber frame, sips panel or ICF superstructure can meet the payment terms of their supplier – often as much as 90% of the system needs to be paid for, before it leaves the factory. Furthermore, advance stage payments are ideal for renovation projects because the first stage of this type of development generally results in the property being devalued because of removal or repairs to the roof, windows and remedial work to the superstructure. However, arrears stage payment mortgages require the property being renovated to increase in value after every stage is completed, in order for further funds to be released.”
A brief overview of the two new Buckinghamshire products is shown below:-
|Overview||Advance Self Build||Advance Plus Self Build|
|Product Type||2 Year Discount – 0.25% off SVR||2 Year Discount – 0.15% off SVR|
|Initial Pay Rate||4.99% variable||5.09% variable|
|Repayment||Interest only during build stage then reverts to repayment||Interest only during build stage then reverts to repayment|
|Early Repayment Charge||3% for the first 24 months||3% for the first 24 months|
|Bucks Application Fee||none||none|
|Bucks Product Fee||£999||£999|
|Max Plot Cost LTV||80%||80%|
|Stage Cost LTV||80%||85%|
|Max LTV at Completion||80%||80%|
Buckinghamshire Building Society already offers two arrears discounted mortgage products for self and custom build through BuildLoan. Details of the full Buckinghamshire product range for self and custom build can be found here.