5 November 2013
Hinckley & Rugby Building Society has launched a new mortgage for people who want to build their own home.
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To be eligible, applicants must already own the land earmarked for their project. Additionally, plans must be drawn up by an RIBA-qualified architect and submitted with with full costings and planning/building consents.
The self build mortgage is available, both to direct customers and via brokers, 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 (overall cost for comparison – 5.9 per cent APR).
Although the institution has previously offered finance options to self builders, this product is its first ‘official’ self build mortgage. Stewart Heeley, Hinckley & Rugby’s Marketing Manager, said: “In the past, if we received an enquiry from somebody for a loan for a self build project, we aimed to progress any application if it met our lending criteria. But there were a number of occasions where we weren’t able to help. This product has been designed specifically to get around that problem.”
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.”
The number of self build lenders in England and Wales has doubled over the last two years. Buildstore, the UK’s leading provider of specialist self build finance products, recently reported a 26% rise in mortgage applications year-on-year.
