Beverley Building Society says it cut the rates on its self-built mortgages by 76 basis points as homeowners re-examine their housing needs in the wake of the pandemic.
The Humberside-based mutual has cut its rate on these types of home loans to 3.49% For the period of construction, with a maximum loan-to-value ratio of 80% and a product fee of 1%.
He adds that once the project is completed borrowers can switch to another scompany plan, or pay a prepayment charge.
The number of people joining the National Self-Build Registry increased by 25% to 58,813 in 2021, the firm says, citing the latest government data. This followed a 50% increase in the number of such homes built in each of the previous two years, to 15,000.
Then-Housing Secretary Robert Jenrick launched a review to ease the self-build application process in October 2020. As part of thand revision, a day of the right to build has been established, which obliges the local authorities, on each anniversary of the start of the review, for granting planning permission to enough suitable plots to reflect the number of registrants in their areas.
Beverly Building Society hHead of New Business Lending, Simon Glass says: “We all know the UK is a nation of property lovers, fueled, in part, by popular primetime TV shows . This, added to the isolation associated with COVID-19 and working from home, is causing people to reconsider their housing needs – plus, perhaps, the desire to realize their vision of home ownership more profitably – are all fueling an increase in the number of people needing a self-built mortgage.
“This is why, once again, we are responding to a more complex borrower need, with a solution that is both flexible and very economical compared to others.
“We have extensive experience in self-built properties and complex renovations such as barn conversions – as well as unusual properties such as those subject to agricultural conditions or located on large amounts of land. We also take a flexible approach to the construction stages during which we will release funds. »