BuildStore and its intermediary wing, BuildLoan, will distribute the Society's three-year self build mortgage at a Standard Variable Rate (SVR) presently at 2.95 per cent plus 1.30 per cent, leaving the product available currently at 4.25 per cent, plus applicable fees.
The product will be available on the purchase of land and build of a new property, renovation of an existing property, or the conversion of an existing structure for residential purposes. During the build, the mortgage can be available as interest only. On receipt of the completion certificate, the mortgage reverts to a capital repayment basis currently 2.95 percent SVR.
The Society will lend on maximum of £500,000 at 85 per cent loan to value (LTV) to purchase land or property and up to 85 per cent of the cost of each stage during the build, subject to valuation.
Funds will be released on an arrears stage payment basis and the final mortgage value must be no more than 75 per cent LTV.
Emma Parker, Business Development Manager at Stafford Railway Building Society commented: "We are really looking forward to working with BuildStore. The company has a proven track record in helping clients realise their dreams of building their own home and we are sure that our product will complement this"
Raymond Connor, BuildStore’s Chief Executive, said: “The Government’s continued support of the self build market means that demand for tailored finance is continually on the rise, and prospective self builders are increasingly turning to specialists to secure the right type of funding for their bespoke home projects. Our partnership with Stafford Railway Building Society will enable more self builders to access the tailored funding solutions required for a successful project, and demonstrates the growing commitment of lenders to the self build housing sector."
