Saffron For Intermediaries has launched a new mortgage product to replace its existing deals for self-builders.

The new self-build mortgage is provided on an interest-only basis for a period of 24 months, after which the borrower can switch to another Saffron mortgage product or remortgage to another lender.

Borrowers can draw-down funds as required and are no longer restricted by inflexible stage payments. Saffron will also accept applications from first-time buyers.

The new self-build mortgage is priced at 4.20%, discounted (SVR – 1.19%) for 24 months. It is available up to 65% of the purchase price of the plot, 100% of the build costs and up to 75% of the gross development value.

There is an arrangement fee of 1% and no early repayment charges.

Saffron For Intermediaries will lend from £30,000 up to £1m.

Anita Arch, head of mortgage sales at Saffron, said: “We’ve listened carefully to feedback for self-builders, who tell us they want to keep mortgage costs to a minimum during the build period and that they also want the flexibility to draw down funds as and when required, rather than being tied to an inflexible stage payment system.

“This deal, which offers a combination of a discount, interest-only payments and drawdown’s as required, ticks all the boxes. We will also accept applications from first-time buyers, which will be of interest to offspring who plan to build on spare land that may have been released by their parents.”