Leeds Building Society has re-entered the self-build market by launching a new variable product designed for people who wish to build their own home.
The money is released in five stages – land purchase, wall plate, roofed in, plastered out and completed. The society will release up to 75 per cent of the value for each stage. Borrowers only repay the amount they have borrowed and can access funds at each stage of the build.
Leeds Building Society general manager Paul Kaye says: “It is often very difficult to predict and budget exactly for five stages. Purchasing the land will usually be the biggest expense and we will lend up to 60 per cent of the value with outline planning permission and 75 per cent with full planning consent. The flexibility of our self-build product means the process is made much easier.
“Furthermore, we will lend up to 75 per cent LTV on the completed property so customers only have to find 25 per cent of the value throughout the process.”
The mortgage deal is a two year variable, currently at 6.19 per cent, after which the borrowers can transfer to another deal. There is no higher lending charge and fixed fees of only £999.