The product lends up to 95 per cent of the cost of the land, plus up to 95 per cent the cost of the build. This is then subject to a final loan-to-value (LTV) of 85 per cent. After the deal period, the product reverts to TMB’s standard variable rate of BBR + 2.39 per cent. The product has a completion fee of £599, with an early repayment charge (ERC) in the first year of 5 per cent.
Ray Boulger, senior technical manager for John Charcol, commented: “For the first three years, this product looks very good value. Having ERCs for one year is really good, as it gives a lot of flexibility. If people have completed the build work after one year, then they can refinance. But if the work takes longer than a year, customers still get a decent rate, but are completely free to refinance as and when they need to.”
Nigel Payne, chief executive of TMB, said: “There is a great deal of expertise required in self-build and we believe BuildLoan is the best place to be. We are continuing to expand the market we can cover and we will continue focusing on developing the self-build market.”
