The product has an initial rate of 5.89% fixed until 31 August 2009 followed by TMB’s Standard Variable Rate (currently 7.94%) for the rest of the term. The product has a completion fee of £899 and there is an early repayment charge of 5% until 31 August 2009.
Through the exclusive BuildLoan scheme, self builders can borrow up to 95% of the purchase price of land and up to 95% of the cost of the build in stages in advance. This provides positive cashflow during the project which not only keeps things moving but can also save the borrower money by finishing the project quicker. The maximum loan to value for the BuildLoan TMB Self Certification scheme is 85%.
Commenting on the development, Stewart Cooper, managing director, financial services at BuildStore, said: “When you are building a house cashflow is paramount and this is why our advance stage payment mortgages are so popular. With interest rates rising many more self builders are looking to control costs by fixing their mortgage payments during the build. The two-year fixed rate product from TMB is therefore ideal as it covers the typical period between purchasing the land and finishing the build“.
Nigel Payne, managing director TMB, commented: “We have been working in partnership with BuildLoan for a number of years and are keen to develop our self build proposition through them. I believe this fixed rate product is ideal in the current environment in that it allows borrowers more certainty of costs during their build.”
