Suffolk Building Society has launched an eco self-build mortgage product, in order to encourage the build and renovation of energy efficient homes.
The product has a lower interest rate than the standard self-build product, and a £500 reduction on the completion fee.
The society has also offered all new or existing self-build borrowers and renovators a lower interest rate follow-on product, compared with the standard retention range, if the resulting property has an Energy Performance Certificate (EPC) rating of Band A or B.
The society will waive Early Repayment Charges (ERCs) for all self-builders and renovators who switch to a follow-on product, to enable them to benefit from a more competitive rate after their build is complete.
The eco product consists of a 2-year discount at 6.09% (SVR minus 2.60%), £999 completion fee, available up to 80% loan-to-value (LTV), with a maximum loan size of £1m.
The application fee is £199, and the completion fee is £999 – £500 lower than the society’s standard self-build product.
The society has also offered a discounted follow-on product at 25bps lower than its residential retention products, for all self-builders and renovators if their finished build has an EPC rating of A or B.
Andrew Sadler, key account manager at Suffolk Building Society said: “At Suffolk Building Society, we are committed to being carbon neutral in our own operations by 2030, but we also want to support our members to improve their own energy efficiency.
“These new products have been specifically designed with that in mind, incentivising self-build borrowers and renovators to build more energy efficient properties by rewarding them with reduced rates and fees.
“We’ve always aimed to make self-build projects attractive, operating flexible stage payments, as well as lending on the land purchase, so we’re pleased to be taking this a step further.”
