Key Features

• The minimum loan amount is £75,000.00.
• The maximum loan amount is £500,000.00.
• The maximum initial release would be 80% of the plot value. Further installments would be released upon re-inspection by the Society’s Valuer, subject to no more than 80% of the value of the property being released at any time.
• Minimum value once complete £175,000
• Available on capital repayment or interest only. Where a suitable repayment strategy does not exist, interest only is permissible during the construction phase.  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.
• We 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.
• We must have confirmation that all necessary planning permissions/building regulation consents have been obtained in respect of the build of the property/renovation. We 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.
• We will need plans of the proposed works, along with detailed costings and evidence of a 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

• Product Fee – £999. Payable in advance. Refundable prior to completion. Can be added to loan as long as the maximum loan to value is not exceeded
• 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.  Payable upon redemption of the mortgage.

Representative Example

A mortgage of £182,400 payable over 29 years on our discounted rate for 3 years at 1.60% below the Society’s current variable rate, making the current rate payable 5.89% (variable), and then on our current variable rate of 7.49% (variable) for the remaining 26 years would require 36 monthly payments of £1,094.43 and 312 monthly payments of £1,272.20 plus one initial interest payment of £441.51.

The total amount payable would be £435,664.73 made up of the loan amount plus interest (£254,855.73) and a product fee of £999, valuation fees of £360 and a mortgage exit fee of £50.

The overall cost for comparison is 7.4% APRC representative.

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

What is a Representative Example?

Representative Examples include the costs associated with a typical mortgage from Penrith Building Society.  They are not specific to your circumstances. For a Mortgage Illustration, which takes into account your specific circumstances please contact us directly using the button below.

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