Nottingham targets self-build market

Nottingham targets self-build market

Nottingham is launching itself into the self-build market with two mortgages aimed at new builds and conversions.

The building society will offer a 4.39 per cent two-year discounted product and a 5.19 per cent two-year fixed-rate product for self-builders in England and Wales looking to construct a new-build property for residential purposes or convert an existing barn into a home.

Self-builders will be able to borrow up to 65 per cent loan-to-value (LTV) on the purchase of land and up to 75 per cent LTV of the final value of the property.

Available via BuildStore, the new loans will have a £1,499 lender arrangement fee.

Nikki Warren-Dean, head of intermediary sales at The Nottingham, said: “Given the level of housing supply shortage we continue to face in the UK the self-build market is predicted to grow by around 3-6 per cent annually over the next three years. 

“In view of this, many people are likely to need help finding the right mortgage and I believe our new mortgage products will be very attractive. 

“By minimising upfront fees and offering competitively priced products we aim to help self-builders at a time when they have large outgoings.”

Rob Jupp, chief executive at Billericay-based Brightstar, commented: “I think it looks like a good product. BuildStore are perceived as the market leader in the self-build market, and I expect there to be some additional challenging products available in the weeks and months ahead.”