Beverley Building Society reduces self-build rate by 0.76%

Beverley Building Society has reduced the rate on its self-build mortgages by 0.76%, from 4.25% to 3.49%.

The Beverley said it had made the move to cater for the increasing numbers of people choosing to build their own homes.

Product details at a glance

  • Interest rate 3.49% (1.50% discount on SVR) (previously 4.25%/0.74% discount on SVR) for the period of the build.
  • Post-completion, the borrower can move to another Society scheme or pay an early repayment charge
  • Maximum LTV 80%
  • Product fee 1%.

According to latest UK Government statistics, the number of people joining the national self-build register rose by 25% between 2020 and 2021, to 58,813. This followed a 50 per cent rise in the number of such homes being built in each year of the previous two years, to 15,000.

On 30 October 2020, Housing Secretary Robert Jenrick also launched a review into the self-build application process, to make things easier for custom-builders, an industry estimated to be worth £4.5bn to the UK economy.

As part of this review, ‘Right to Build’ day was introduced, requiring local authorities, on each anniversary of the review’s launch, to have granted planning permission to enough suitable plots to reflect the number of people registering in their areas.

Head of new business lending, Simon Glass (pictured), said: “We all know that the UK is a nation of property-lovers, fuelled, in part, by popular prime time TV shows.

“This, plus COVID isolation and homeworking leading people to reconsider their housing needs – plus, perhaps, a desire to achieve their property vision more cost-effectively – are all fuelling a rise in the number of people needing a self-build mortgage.

“Hence why, once again, 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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