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Beverley Building Society reduces self-build rate by 0.76 per cent

  • 12/05/2022
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Beverley Building Society reduces self-build rate by 0.76 per cent
Beverley Building Society has reduced its rates on self-build mortgages from 4.25 per cent to 3.49 per cent in response to the increasing number of people choosing to build their own homes.

The reduced product has a 3.49 per cent rate with a 1.5 per cent discount on standard variable rate (SVR) for the period of the build. It has a maximum loan to value (LTV) of 80 per cent and a 1 per cent product fee.

Once the build is complete, the borrower can move to another scheme or pay an early repayment charge.

According to government statistics, the number of people joining the national self-build register rose by 25 per cent between 2020 and 2021, to 58,813, following a 50 per cent rise in new self builds each year for the previous two years, to 15,000.

In October 2020, the self-build industry was estimated to be worth £4.5bn to the UK economy, creating increased political pressure on local authorities to grant planning permission to enough suitable plots to reflect the number of people registering in their areas.

Simon Glass (pictured), head of new business lending at Beverley, said the growing popularity of self-builds has been “fuelled, in part, by popular prime time TV shows, Covid isolation, and homeworking leading people to reconsider their housing needs,” as well as “a desire to achieve their property vision more cost-effectively.”

Glass added: “We are responding to a more complex need among borrowers, with a solution which is both flexible and very cost-effective compared to others out there.

“We have extensive experience in both self-build properties and complex renovations such as barn conversions – as well as unusual properties such as those subject to agricultural conditions or situated on large amounts of land. We also take a flexible approach to the build stages at which we will release funds.”

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