The two-year tracker will be priced at Bank of England Base Rate (BBR) plus 0.49 per cent, giving an initial pay rate of 5.24 per cent, up to 85 per cent loan-to-value (LTV). After the deal period ends, the product will revert to TMB’s standard variable rate (SVR), currently 6.99 per cent. The product has a completion fee of £799 and early repayment charges (ERCs) of 5 per cent in year one and 4 per cent in year two apply.
Ashley Clark, from Need An Adviser.com, commented: “Having 0.49 per cent over BBR is a very attractive rate for anyone looking to self-build. It’s a great rate and has an attractive LTV, but I can see borrowers walking away after the two years are over, because no one will stay on that SVR. The danger is they will lose a good part of their book after two years.”
Commenting on the development, Stewart Cooper, managing director, financial services at BuildStore, said: “TMB and BuildLoan have had a very successful relationship for a number of years and TMB’s decision to market self-build exclusively through BuildStore and to expand its product offering into the full status market demonstrates the strength of the relationship between the firms.”
Nigel Payne, chief executive of TMB, added: “There is a great deal of expertise required in self-build and we realised that BuildLoan was the best place for this to be provided. We have expanded the market we can cover via BuildLoan by introducing this product and we will be focusing on developing the self-build market further exclusively via BuildLoan.”
The product follows Cooper’s announcement for plans to expand and improve BuildStore’s service to intermediaries, including an expanded seminar programme and the phased introduction of business development managers (BDMs).
