The two-year discounted rate products are based on arrears stage payments and on an interest-only basis during the build. It is aimed at professional contractors and employees with high amounts of commission, as well as some self-employed clients.
One product has an initial pay rate of 3.99 per cent for two years, a reduction of 1.75 per cent from The Nottingham’s standard variable rate (SVR). This reverts to 4.24 per cent after the discount period.
The second product has a rate of 4.14 per cent, which is a 1.6 per cent discount from the SVR.
Both products are subject to a completion fee of £1,499 and have no application fee. It also has no early repayment charges (ERCs), no lender re-valuation fees and no lender stage release fees and telegraphic transfer fees.
It has a loan size of £50,000 with a maximum of £600,000. The maximum loan size is £500,000 if customers elect for an interest-only option.
BuildLoan’s product development and underwriting head Chris Martin said: “These ERC-free products provide flexibility to clients and complement The Nottingham’s comprehensive lending policy.
“The products are available to the increasing number of self and custom builders using more efficient modern methods of construction to build their home.
The Nottingham’s intermediaries head Nikki Warren-Dean added: “Self and custom build is an increasingly important part of the new-build housing sector. We have worked with BuildLoan to create a product range and lending policy to meet the needs of a wide range of customer circumstances.”
