Heartland Self Build/Renovation (Purchase & Remortgage)

You are here: Home » Mortgages » Heartland Self Build/Renovation (Purchase & Remortgage)

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Key Comparison Notes

A discount off the Society’s Standard Variable Rate of 2.00% for 3 years.	5.99%
Followed the Society’s Standard Variable Rate for the remaining term of the loan, currently:	7.99%
The overall cost comparison is:	7.8% APRC

Heartland Self Build/Renovation (Purchase & Remortgage)

Capital Repayment
Interest Only

Security property must be located in our Heartland area (Cumbria, Northumberland, Tyne & Wear, County Durham, Yorkshire, Lancashire, Dumfries & Galloway and the Borders).
The minimum loan amount is £30,000.00.
The maximum loan amount is £300,000.00.
The maximum initial release would be 75% of the plot value. Further instalments would be released upon re-inspection by the Society’s Valuer, subject to no more than 75% of the value of the property being released at any time.

Available for self builds or renovations of properties for owner occupation only. The Society will, subject to compliance with mortgage conditions, offer a discount of 2.00% off the Society’s Standard Variable Rate for 3 years, making the current rate payable 5.99%. After 3 years the rate of interest payable will revert to the Society’s Standard Variable Rate, currently 7.99%.

Available on capital repayment or interest only. Where a suitable repayment strategy does not exist, interest only is permissible during the construction phase only. This concession is granted from the date of the initial drawdown until either the property is complete or 3 years have elapsed. After the property is complete or 3 years have elapsed, any temporary interest only loans will automatically be converted to capital repayment irrespective of the stage of the build.

The Society will require the build or renovation of the property to be completed within a 3 year period and will require three-monthly updates on the progress. Should the build be completed sooner you may be eligible to transfer your mortgage onto a discounted product within the Society’s retention range, subject to eligibility. In the event of the build project being incomplete at the end of the initial interest rate period of 3 years, the mortgage will transfer onto the Society’s Standard Variable rate until the build project is complete.

The Society is to have confirmation that all necessary planning permissions/building regulation consents have been obtained in respect of the build of the property/renovation. The Society will also require the build to be supervised by a suitably qualified Architect or confirmation that an acceptable new homes warranty scheme or guarantee will be provided on completion.

The Society will require plans of the proposed works, along with detailed costings and evidence of 15% contigency, to be submitted at the time of application. Contingency can form part of the borrowing if affordable.

An early repayment charge will be payable if the mortgage is redeemed within the first three years. The early repayment charge will be equivalent to 3.00% of the capital repaid less the permitted 10% overpayment allowance. Overpayments (monthly or lump sum) up to a total of 10% of the outstanding loan per year are allowed without charge. Any amount repaid over the 10% limit will incur an early repayment charge of 3.00% on the excess amount.

Fees

Application Fee – £249. Payable on application. Non-refundable
Product Fee – £750. Payable in advance. Refundable prior to completion. Can be added to loan (subject to LTV limits). Can be deducted from advance upon completion (subject to LTV limits).
Valuation Fee – Variable. Payable on application. Not refundable once the valuation has been carried out.
Re-inspection Fee – £150 per re-inspection. Re-inspections may be required throughout the build to confirm the loan to value is sufficient for the Society to release instalments. A maximum of 5 instalments will be permitted including the initial release. A final inspection will be required to confirm the completed value.
Mortgage exit fee – £50.00. Payable upon redemption of the mortgage

This mortgage is not portable. If you wish to move house and require a loan, you will have to make a new application.

This product may be withdrawn without notice.

Representative Example

A mortgage of £179,312.50 payable over 25 years on our discounted rate for 3 years at 2.00% below the Society’s current variable rate, making the current rate payable 5.99% (variable), and then on our current variable rate of 7.99% (variable) for the remaining 22 years would require 36 monthly payments of £1,154.22 and 264 monthly payments of £1362.54 plus one initial interest payment of £441.40.

The total amount payable would be £404,209.59 made up of the loan amount plus interest (£222,633.09) and an application fee of £249, a product fee of £750, valuation fees of £1,215 and a mortgage exit fee of £50.

The overall cost for comparison is 7.8% APRC representative.

This representative example assumes a mortgage completion date on the 15th day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

Further Home Builder Mortgage Products:

Products	Prod Code	More Details	Distribution	Initial Rate	Initial Period	Reverts to	App Fee	Product Fee	Free Val?	Fee Assisted Legals?	Max LTV	Min Loan Amount	Max Loan Amount	ERC	Features
Heartland Self Build/Renovation – Large Loan (Purchase & Remortgage)	P037	View Details	Broker & Direct	5.99%	3 Years	SVR	£499	£999	No	No	75%	£300,001	£500,000	3.00% During Disc Period	Overpayments up to 10% of the outstanding loan, per annum. For owner occupation only
Heartland Self Build/Renovation (Purchase & Remortgage)	P036	View Details	Broker & Direct	5.99%	3 Years	SVR	£249	£750	No	No	75%	£30,000	£300,000	3.00% During Disc Period	Overpayments up to 10% of the outstanding loan, per annum. For owner occupation only