Intended for self-builders and renovators, the product has a rate of 5.89 per cent with a completion rate of £899 and an early repayment charge of five per cent for the fixed term. The product is part of the BuildLoan scheme where self builders can borrow up to 95 per cent of the purchase price of land and up to 95 per cent of the cost of the build in stages in advance.
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The capital means that the project not only stays on track financially, but may also save the borrower money by them finishing the project quicker. The maximum loan to value for the BuildLoan self cert scheme is 85 per cent.
Nigel Payne, TMB managing director, said: “I believe this fixed rate product is ideal in the current environment in that it allows borrowers more certainty of costs during their build.”
Stewart Cooper, managing director, financial services at BuildStore, added: “When you are building a house, cash flow is paramount. The two year fixed rate product from TMB is ideal as it covers the typical period between purchasing the land and finishing the build.”
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Elizabeth Smith, mortgage adviser at Money Plus, said: “I think this will be very popular if the builders can meet the full status income of 95 per cent.”
