The Saffron Building Society has launched a new lower rate, self-build mortgage at 3.99%.

The mortgage includes the following features:

• Every application is manually assessed by a specialist self-build underwriter
• Flexible stage payments; funds are released in stages that can be tailored to each individual project
• Available to first time buyers
• Up to five times income considered on applications, assessed on a case by case basis
• Custom-build developments are also accepted

Details of the mortgage are as follows:

• Rate: 3.99% (SVR -1.65%) to 75% LTV
• Arrangement fee: 1%
• Early Repayment Charge (ERC): None
• Loan: Min loan £30k, Max loan £1m
• Term: 24 months
• Repayment: Interest only
• Purpose: For purchase or remortgaging
• Maximum Age: No maximum

Anita Arch, The Saffron Building Society’s head of mortgage sales, said: “The popularity of self-builds is noticeably growing with more and more support available to turn ideas into reality. Self-build projects don’t need to be construction from scratch. They can be renovations to an existing property, or conversions to a barn, basement, loft or garage. In essence, any large extension could be classified as a self-build construction.

“Saffron has years of experience providing finance for people looking to build their own ‘dream homes’ – we believe this new lower rate mortgage opens up possibilities to even more self-builders.”