A building society based in the north-west of England has launched two self-build mortgage products and joined a specialist lending panel for those who want to build their own home.
The Vernon Building Society, based in Stockport, Greater Manchester, will offer its products exclusively through BuildLoan, a panel of specialist mortgage providers.
Borrowers can access a two-year accelerator mortgage at a rate of 5.5 percent. This is an advance payment product that lets customers access the funds up front at each stage of their build.
There’s also a two-year discount rate mortgage available on a rate of 4.74 percent. Clients will receive the funds from this product after the completion of each specific stage of the build.
Secured essential funds
There’s a maximum final loan-to-value of 80 percent on each product with customers able to borrow up to 85 percent on land and build costs.
The building society, founded in 1924, announced its new products by focusing on self-builders Mark and Sharon Dawson who used a Vernon self-build mortgage to buy an old barn and convert it into their dream home.
With the help of their independent financial advisor, Maggie McCrea, the couple were able to provide all the details on their finances, earning potential and assets to the Vernon before securing the essential funds in just two weeks to start work.
Invested in dream home
In a letter to the Vernon chief executive Steve Fletcher, thanking him and his staff for their help, Mark wrote: “You have provided the lending to allow my wife and I to buy, build and ultimately enjoy our beautiful new home. You have two very happy and what will be loyal customers. Thank you so much for helping us build our dream home.
“You invested in our dream, we repaid your faith in us by paying what was due and staying loyal to you at the end of the project.”