Renovation, Custom Build and Self-Build

  • Initial interest rate:

    5.5% variable

  • For comparison purposes:

    6.1% APRC 

  • Fees:

    £1500 purchase

    £1500 remortgage

  • Maximum LTV:

    75%

  • Early repayment charge:

    Yes

  • Overpayments allowed
  • Portable

Your home may be repossessed if you do not keep up repayments on your mortgage.

Interest rates:

  • During the 2 year deal: 

           5.5%(our standard variable rate minus -0.5%)

  • After deal ends:

         Our standard variable rate (currently 6.00%)

  • For comparison purposes:

            6.1% APRC

Maximum LTV:

  • 75%

Fees:

  • Purchase application fee: £1500
  • Remortgage application fee: £1500
  • Mortgage exit administration fee (MEAF): £100
  • Valuation fee is payable

Loan size:

  • £50,000 (min) - £750,000 (max)

Features:

  • We will refund half of the application fee paid, if you can show us an Energy Performance Certificate (EPC) showing that the property (once the renovation/build is complete) has a rating of A or B. 

Overpayments:

  • Each year during the 2-year deal, you can overpay up to 20% of the original loan amount without incurring any early repayment charges.

Early repayment charge (ERC):

You will be charged an ERC if you:

  • Repay your mortgage early (including switching to a new deal before your currrent deal period ends), or
  • Make overpayments above your 20% annual allowance.

The applicable ERC rates are shown in the table below.

 If you repay your mortgage in full:

If you overpay more than your 20% allowance:

Year 1 of deal:2% of original loan amount (or balance transferred from an existing mortgage to this deal)2% on the amount exceeding the 20% allowance
Year 2 of deal:1% of original loan amount (or balance transferred from an existing mortgage to this deal)1% on the amount exceeding the 20% allowance
Year 3 onwardsNo chargeNo charge

Representative example:

A mortgage of £111,500 (including an application fee of £1,500) payable over 11 years, initially on a rate of 5.5% , which is our our standard variable rate (currently 6.00%) with a discount of 0.5% for 24 months, then on our standard variable rate (currently 6.00%) for the remaining 9 years, would require 24 monthly payments of £511.04 and 108 monthly payments of £557.50.

The total amount payable would be £184,674.96 made up of the loan amount plus interest of £72,474.96, a valuation fee of £600 and a MEAF of £100.

The overall cost for comparison is 6.1% APRC representative. Please note this illustration is based on an interest only basis (capital and repayment is also available).

A representative example is based on a typical mortgage and the figures shown above are intended as a guide. Your actual rate, costs and monthly repayments will differ depending on your circumstances and the mortgage chosen.

Who’s eligible to apply?

Custmers who:

  • Are purchasing land (with planning permission) with the intention of building a home to live in.

  • Already own land with planning permission and are remortgaging to fund the build.

  • Are remortgaging part way through the build.

  • Are purchasing or remortgaging an existing property that needs extensive workd yo make it inhabitable or they are choosing to upgrade the property to live in.

  • Are requesting further borrowing on an existing self-build account due to overspend or increased costs.

  • The property must be located in England or Wales (London restrictions apply).

All mortgage deals shown on our website are subject to change and can be withdrawn without notice. Please speak to one of our mortgage advisers to find out which deal is most suitable for you.

Fees:

  • Application fees can be added to the mortgage and are refundable if the mortgage does not take place. 
  • A valuation of the property will be required to assess the security offered for the loan. We offer the choice of either a basic mortgage valuation, which is for us to assess security only, or a Home Buyer’s Report that will give you a more comprehensive guide to the condition of the property. The fee for this is payable in advance and cannot be refunded once the valuation has taken place.
  • We will refund half of the Application Fee paid at the start of the mortgage if you show us an Energy Performance Certificate (EPC) showing that the new build property has a rating of A or B.

         Terms and conditions:

         1. The customer has to show us the certificate within 2 years of our self build   mortgage starting.

         2. The mortgage must still be open with us when the refund happens.

Note: All new build properties have to have an EPC before Building Control will sign off the property. The rating can be calculated from architects plans and specifications or after the build is completed.

  • A mortgage exit administration fee (MEAF) applies when you repay your mortgage. You may have to pay this if:
  • Your mortgage term comes to an end;
    You transfer the loan to another lender; or
    You transfer borrowing from one property to another.

Other charges:

  • Charges applying to the ongoing administration of your mortgage are detailed in our Tariff of Charges leaflet, which you will be given before your mortgage completes. They can also be found on our website. 

Portability:

  • All our mortgages are portable, which means that if you move house within an early repayment charge period the product can be transferred to your new mortgage, up to the value of the product outstanding at redemption, without charge.