Mortgage News
Newcastle Intermediaries launches self-build advance stage payment products
Newcastle Intermediaries has boosted its self-build proposition by launching accelerator products.
They are exclusively available through BuildStore Mortgage Services and its intermediary arm, BuildLoan and are on sourcing systems for an illustration.
The accelerator product, also known as an advance stage payment product, is aimed at supporting borrowers who would benefit from having funds released at the beginning of the building phase.
Both self-build and custom build borrowers can either choose a two-year base rate tracker or a two-year fixed rate.
The two-year base rate tracker is at 5.29%, whilst the two-year fixed rate stands at 5.59%.
Industry, not regulation, must lead later life lending change
Sponsored by Suffolk Building Society Intermediaries
Both are available at a maximum loan to value (LTV) of 85%.
They both provide fees of £1,194 with 10 per cent over payments per annum and an early repayment charge of 2% until 31st July 2020 and 1% until 31st July 2021.
Stuart Miller, customer director at Newcastle Intermediaries, said that the advance stage payment product provides access to capital at an earlier stage as it is possible to advance up to 85% of the phase costs, meaning more flexibility and the comfort of knowing that the funding is accessible in advance of each stage.
Raymond Connor, CEO at BuildStore (pictured), said: “We’re delighted that Newcastle has decided to increase customer choice with this Advance Stage Payment option.
“The new product underlines the society’s commitment to the self and custom build sector, and the understanding of customer’s needs.
“The advance stage payment option comes into its own where the borrower is building using offsite construction methods, such as timber frame, SIPS panels, or indeed any building system which requires a substantial payment before the structure leaves the factory.”