Vernon launches two self-build mortgages

The building society has joined the lender panel of specialist mortgage provider BuildLoan, through which its self-build products are exclusively available.

In its self-build range Vernon offers a two-year accelerator mortgage at a rate of 5.5 per cent, designed as an advance payment product to provide funds up front to the client at each stage throughout the build.  

A two-year discount rate mortgage is also offered at a rate of 4.74 per cent, designed as an arrears payment product to be paid to clients retrospectively after each stage's completion.

Neither products will require interim valuations during the build and customers can borrow up to 85 per cent on land and build costs, with a maximum final loan-to-value of 80 per cent.

Self-build mortgages are yet to benefit from the competitive nature of the mortgage marketCarl Shave

Tom Gurrie, head of intermediary sales at Vernon Building Society, said self-build was a highly specialised but important part of a diverse housing market.

He said: "BuildLoan is the UK’s leading provider of specialist mortgages for self build and we are delighted to add our competitive products, flexible lending policy and underwriting expertise to their panel."

"We look forward to working together to provide lending solutions that help brokers and their clients in this growing market."

Rachel Pyne, operations director at BuildLoan, said: "We are delighted to welcome Vernon Building Society to our lender panel, these new products will strengthen our product offering and provide more choice and flexibility to mortgage brokers and their homebuilding clients."

Carl Shave, director at Just Mortgage Brokers, said the Vernon Building Society’s self-build proposition was a welcome addition to a sector of the market that offered limited availability.

He said: "Self-build mortgages are yet to benefit from the competitive nature of the mortgage market and would be self-builders still find themselves being charged higher rates and generally also increased fees for the greater perceived risk to lenders.  

"Having a greater number of providers in this field can only be a good thing for the consumer."

rachel.addison@ft.com