View more on these topics

Get building with Britannia

Britannia Building Society is laying new foundations in the mortgage market with the introduction of the self-build mortgage.

Self-build is aimed at people who are looking to build a house from scratch and has been introduced in co-operation with self-build specialists Buildstore, formerly known as the Self Build Advisory Service, which offers advice on building your own house and which building companies to use.

The mortgage will have an interest rate that will start off at 1.65 per cent above the Bank of England base rate. After the first year this will reduce to 0.85 per cent above the base rate for five years, and then 0.7 per cent above the base rate for the next five years, before settling at 0.55 per cent above the base rate.

For self-build mortgages there are five key stages of building a house. First the land must be purchased, then the foundations put down, the walls erected, the roof put on and the interior walls plastered. Tranches of money are released at different times to coincide with these stages.

There are 36 other lenders operating in this market, but unlike many of the others, the Britannia mortgage will provide up to 95 per cent of the value of each stage before they are started. The others tend to release funds after different stages of construction, from land purchase to putting on the roof.

According to Buildstore an estimated 20,000 self-build mortgages were taken out in 1999, making up 12 per cent of all new houses built that year. The Britannia mortgage is not unique as it relies on the Buildstore accelerator scheme, which helps borrowers to identify land to buy as well as suppliers of building materials. Accelerator is also available to customers of Bradford & Bingley and Mortgage Express.


Woolwich – Open Plan Offset Together Mortgage

Friday, 1 June 2001.Type: Flexible tracker-rate mortgage.Tracker term: Term of loan.Tracker rate: Bank of England base rate plus 0.75 per cent.Minimum loan: No minimum as balance is offset with credit balances.Maximum loan: Up to 95 per cent of valuation subject to no maximum.Income multiples: 3.25 times principal income plus second or 2.5 times joint.Features: Underpayments, […]

IFAs take bigger slice of life and pensions

IFAs are reaping the benefit of the collapse in direct salesforces and now account for nearly 60 per cent of the growing individual life and pension market, according to the latest ABI figures. IFAs took 59.4 per cent or £1.3bn of all new individual life and pension business on an equivalent premium income basis in […]

Investors &#39still switched on to technology funds&#39

Technology funds are continuing to grab the attention of investors despite recent lacklustre performance, according to online price and performance information provider Trustnet. The fund receiving the most hits from users of the website in April was Aberdeen Asset Managers&#39 technology unit trust, while three further tech funds appear in the top 20. But the […]

More variations on the survival blueprint theme

It seems every couple of months we get another blueprint for the future of the IFA market. The amount and scope of these plans is always amazing, as no one actually knows what will be the result of the FSA&#39s Treasury-influenced second-stage review of polarisation, which could throw even the best laid plans into disarray […]

Introducing Trevor Greetham

Ryan Medlock, Investment Proposition Manager, Royal London Royal London Asset Management’s (RLAM) new head of multi-asset is officially up and running. I want to look at what expertise Trevor brings to the table and how this affects the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs). Trevor Greetham joined RLAM in April 2015 from […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment