Saffron for Intermediaries is running a spring sale on its self-build mortgages, with a 1 per cent discount available on its current rate.
The move means self-builders will be able to borrow at variable rates starting from 4.59 per cent on an interest-only or repayment basis for a period of up to 2 years.
In addition, the product fee has been cut in half, from 2 per cent to 1 per cent.
Anita Arch, head of mortgage sales at Saffron, said: “Spring is traditionally the time when self-build projects get underway and we therefore thought a mortgage sale would be a welcome offer.
“I have no doubt this will prove to be popular with anyone thinking about building their dream home or converting or refurbishing an existing structure.
“Once the build has been completed, borrowers can apply to switch to any of our other residential mortgage products available at the time.”
Saffron typically offers self-build mortgages from £30,000 to £500,000, but considers applications of up to £1m on a bespoke basis.
Loans are available for the purchase of land, barn conversions or knock-down and re-build projects, with the lender covering the full cost of the work subject to a maximum 75 per cent of the gross development value.
Jane King, independent mortgage adviser at London-based Ash-Ridge Asset Management, commented: “I don’t do a lot of self-builds, but when I do it is hard to find a good lender.
“Saffron are a very good lender for self-builds, so the fact that they are looking to offer some attractive rates is a very good thing, and I think it will be welcomed.”
simon.allin@ft.com
