2 year discount 85% loan to value

Product availability

This product is available via BuildLoan.

Who's the product for?

Our range of self and custom build mortgage products have been designed to help borrowers who dream to build their own home.

Product related fees

There is an arrangement fee of 0.5% of the loan amount. This fee can be paid up front by deducting the fee from the amount borrowed. Alternatively the fee can be added to the mortgage amount. Please note, there is a minimum arrangement fee of £999.00.

If the fee is added to the mortgage your client will pay interest on the fee at the same rate as the mortgage.

Mortgage amounts

The minimum mortgage amount is £50,000 and the maximum mortgage amount is £600,000.

The minimum property value upon completion of the build is £75,000 increasing to £250,000 for properties located within the M25 corridor.

The maximum loan to value is 85% during the build phase.

Mortgage repayment terms

The minimum repayment term is 5 years and the maximum repayment term is 35 years.
Your client will only qualify for this product for 2 years from inception, by which the build should be completed and they can apply for any suitable product from our standard mortgage range.

Interest rate floor

The interest rate is floored which means that the rate on your clients mortgage cannot drop below 4.49%.

Early Repayment Charges

Your client can repay up to 10% of the original mortgage amount each year without being charged. Payments that exceed 10% will be subject to an Early Repayment Charge.

Additionally, if they redeem your mortgage or switch to another product during the discount rate product term then an Early Repayment Charge will apply.

The Early Repayment Charge will be calculated as follows:

• 2% of the amount repaid for the first year; and
• 1% of the amount repaid for the second year.