Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

BuildLoan unveils short-term mortgage solution

mortgage solution



The product is designed to meet the needs of clients who want to repay their self-build mortgage in full through the sale proceeds of their previous home

Self and custom build finance specialist BuildLoan has created a short-term mortgage for builders who need to fund the construction of their self or custom built home until they move in and sell their previous property.

The product – developed with Buckinghamshire Building Society – is designed to meet the needs of clients who want to repay their self-build mortgage in full through the sale proceeds of their previous home.

Self-builders have two years to build their new home and one year to sell their previous home and repay the mortgage, compared to the 12-month maximum term of a regulated bridging loan.

In common with all BuildLoan products, funds are released in stages as the build progresses, with all stage releases agreed at application and based on the cost of each stage of work.

There are no interim valuations, so with no risk of down valuation, so borrowers will receive the funds they need at each stage to buy materials or pay their developer or builder.

Funds can be released in advance of each stage of work, suited for those with less cash of their own or who are using a build system such as timber frame, which may require a large up-front payment.

Loans of up to £500,000 ($631,360) and up to 85% of build costs are available, with a current rate payable of 6%, a 2.5% product fee and no early repayment charges.

Chris Martin, head of product development and underwriting at BuildLoan, said: Most current self and custom build mortgage deals aren’t available to clients who have a shorter-term need for finance. Many self-builders want to stay in their current home while they complete their self-build project and will then repay their mortgage in full. This product takes away the pressure of having to repay a bridging loan within a year, which for many people is unrealistic or too risky.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.



getting money wise

Welcome! Get your FREE access to EVERYTHING we publish…

Our goal is to show anyone how to make investing profitable. You’ll get our FREE weekly newsletter with latest news and information on investment topics along with special offers. Please take time to read our privacy policy . The information you provide us will be processed in accordance with this.