Mortgage News
Loughborough BS launches into self build
Loughborough Building Society has partnered BuildStore to launch a 5.25% fixed rate mortgage for self-build mortgage borrowers.
The move follows Housing Minister Grant Shapps’ letter to mortgage lenders last year urging them to embrace the opportunities offered by new-build. In last year’s budget, the government announced a £30m self-build fund and also promised to release government-owned land to sweeten the deal.
The BuildStore loan offers self-builders up to 75% of the cost of the land, fixed for two years at 5.25%, reverting to SVR of 4.99% for term.
Raymond Connor, founder and chief executive of BuildStore Financial Services said: “We warmly welcome the addition of Loughborough to our lending panel and applaud its innovative approach in seizing the opportunity the self-build market offers.
“From self builders’ point of view, the net result of our partnership with Loughborough is enhanced product choice and support in providing positive cash-flow at every stage of the build, which is critical to anyone undertaking a bespoke build project.”
The Loughborough’s chief executive, Gary Brebner, said: “Working with BuildStore to engage with self builders fits perfectly with the society’s values as a customer-focussed mutual. We fully support the government’s commitment to self build as a viable route to sustainable housing in addition to the boost in local employment that it can provide.”
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Data from the BSA out today showed mortgage approvals by mutuals were up 45% in the first six months of the year compared to the same period in 2011.
In June, approvals were up by 35% compared to the same month last year and were 20% higher than the average over the previous six months.