Leeds launch self-build mortgage

Leeds Building Society has re-entered the self-build market with the launch of a new variable product specifically designed to help people build their own homes.

Funds are released in five stages, which are Land Purchase, Wall Plate, Roofed In, Plastered Out and Completed. The Society will release up to 75% of the value for each, which is extremely beneficial to self-build customers both in terms of managing their outgoings and cash-flow. Borrowers only repay the amount they have borrowed and can access funds at each stage of the build.

Paul Kaye, General Manager at Leeds Building Society said, "It is often very difficult to predict and budget exactly for five stages. Purchasing the land will usually be the biggest expense and we will lend up to 60% of the value with outline planning permission and 75% with full planning consent. The flexibility of our self-build product means the process is made much easier.

"Furthermore, we will lend up to 75% LTV on the completed property (stage 5), so customers only have to find 25% of the value throughout the process."

The mortgage deal is a two year variable, currently at 6.19%, after which the borrowers can transfer to another deal. There is no higher lending charge and fixed fees of only £999.

Paul added, "Funds are released following an inspection by a qualified surveyor or valuer and sent electronically. Consequently, borrowers receive the money quickly when required and they do not pay any interest until they have received the funds.

"This, combined with the ability to borrow up to 75% of the value at each of the five build stages makes this a very attractive proposition."