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Self-Build Advance Short Term & ERC Free 3 year variable [SB51]

Follow on rate is our SVR, currently 5.39%
the overall cost for comparison is 7.6% APRC

Back

A short term lending option for applicants that are needing to keep their property in the background to reside in, but will be selling on completion of their build to repay our loan.

Collateral charge to be placed on the current residential property - subject to a maximum of 60% of the value of the current residential property.

The self-build loan will need to be in the same name as the residence so that the charges are the same and the applicants are the same.

This product is only available via Build Store.

  • ERC free
  • Mortgage advances made in advance of stage completions
  • Standard credit criteria accepted

A short term lending option for applicants that are needing to keep their property in the background to reside in, but will be selling on completion of their build to repay our loan.

Collateral charge to be placed on the current residential property - subject to a maximum of 60% of the value of the current residential property.

The self-build loan will need to be in the same name as the residence so that the charges are the same and the applicants are the same.

This product is only available via Build Store.

  • Initial Rate, an increase of 0.61% from our SVR for 3 years
    6.00% variable
  • Followed by our Standard Variable Rate (SVR) for the rest of the term
    5.39% variable
  • The overall cost for comparison is
    7.6% APRC
  • Maximum Loan to Value
    80% including fees
  • Application Fee
    none
  • Product fee - cannot be added to the loan
    2.5% of loan, payable before completion
  • Build Loan packaging fee
    £695
  • Build Loan insurance fee
    £1600
  • Early Redemption charge
    There is no early repayment charge on this product.
  • ERC free
  • Mortgage advances made in advance of stage completions
  • Standard credit criteria accepted

Representative Example

A mortgage of £255,000 payable over 3 years initially on a variable rate which is 0.61% above our Standard Variable Rate, currently 5.39%, giving a pay rate of 6.00% for 3 years on an interest only basis would require 36 payments of £1,275.00.

The total amount payable would be £310,412.00 made up of the loan amount plus interest (£45,900.00), a product fee (£6,375), a valuation fee (£310), a desk top valuation admin fee for current property (£95), legal fees (£312), an exit fee (£100), a Build Loan security fee (£1,600), a Build Loan packager fee (£695) and a funds transfer fee (£25).

The overall cost for comparison is 7.6% APRC representative.

Further Information

Fees

  • Society product fee 2.5% of loan, payable before completion, which cannot be added to the loan.
  • Build Loan packaging fee £695 - £95 payable at application stage and £600 after offer is issued. Non-refundable.
  • Build out insurance from Build Loan £1600.
  • Valuation and re-inspection fees for the self-build property are payable as detailed in the separate tariff and will be instructed by the Society.
  • £95 desk top valuation admin fee for current residential property
  • Solicitors and licensed conveyancers fees are not based on a set scale and solicitors must be approved by Buckinghamshire Building Society.
  • Proc fees are 0.8% uncapped
  • Other charges may be made in respect of mortgage services. See our Fees Guide for details.

Acceptable Credit Criteria

This product accepts our standard credit criteria click here for details

Early Repayment Charge (ERC)

There is no early repayment charge for this product.

Overpayments

Overpayments are not permitted during initial rate.

Repayment

These mortgages are available on an interest only basis during the 3 year mortgage term. Payments must be made monthly by direct debit.

Stage Payments

Advances are made in advance based on the valuer's estimate of the value once the next stage is completed for the following stages:

Stage 1 – Land with full planning permissions (max 80% Loan to cost)
Stage 2 – Foundations to damp proof level (max 85% Loan to cost)
Stage 3 – Wall plate level (max 85% Loan to cost)
Stage 4 – Roof on and watertight ( max 85% Loan to cost)
Stage 5 – Plastered out first fix ( max 85% Loan to cost)
Stage 6 – Fully completed ( max 80% LTV)

Build Timescales

The build must start within 6 months of the offer.
The build must complete within 24 months of the first stage release.

Maximum LTV

Maximum LTV on the release of funds at completion not exceeding 80% up to £500,000. Please contact us for full details.

Age limits

The minimum age for all applicants is 25. There is a maximum age limit of 75. Cases are considered on individual circumstances.

Loan Size

Minimum loan size £150,000

Maximum loan size £500,000

Minimum Property Value

Minimum property value is £187,500.

Mortgage Term

The maximum mortgage term is 3 years dependent on individual circumstances.

Portability

This product is not portable.

Interest

Interest is calculated daily on the balance outstanding and added to the account the following month.