Custom build is a hybrid of self-build and new build, where borrowers buy a plot of land on a development and can then decide how they want to design and build their new home either themselves, through an architect or a developer.
Newcastle Intermediaries has launched custom build mortgages that can be accessed through the Build Store, anditsintermediary arm, Build Loan.
Custom build is a hybrid of self-build and new build, where borrowers buy a plot of land on a development and can then decide how they want to design and build their new home either themselves, through an architect or a developer.
There’s a 2-year fixed rate at 5.39%, available at a maximum LTV of 85% with fees of £1,195 to pay with a 10% overpayment facility per annum and an early repayment charge of 2% until 31/03/2020 and 1% until 31/03/2021.
Stuart Miller, customer director, said: “We’ve supported self-builders since 2012, we’re now pleased to expand our proposition into thecustombuild sector, helping more people create their dream home.
“Custom build offers borrowers the flexibility of a self-build whilst providing the support of a new build. We only offer this lending through Build Loan due to the specialist care and additional support they can provide brokers.”
Rachel Pyne, client services director at Buildloan, added: “We are delighted that Newcastle have entered the emerging custom build sector.
“We have worked very successfully with them to assist self-builders and we are sure they will replicate that success providing products which suit both custom build purchasers anddevelopers.
“2019 marks the first year when local authorities are under a duty to deliver planning permissions in line with local demand registers.
“Many authorities see custom build as the only way to comply with the legislation going forward. Around 18,000 extra permissions are expected this year so the Newcastle’s entry is timely.”
Borrowers can opt for a 2-year base rate tracker, which is currently at 5.19%and isalso available at a maximum LTV of 85% with fees of £1,195 to pay,with a 10% overpayment facility per annum and an early repayment charge of 2% until 31/03/2020 and 1% until 31/03/2021.
Both new products come with a maximum loan amount of £600,000.
The stage payments are in arrears and are based on completed milestones during the custom build, rather than on valuation. To keep costs low during the build, customers can also enjoy an interest-only option during their build, reverting to repayment postbuild.
