Move away from expensive self-build mortgage rates once the property is built

by Aaron Strutt

Oct 10 2019

If you have finished the build on your new home and still have a self-build mortgage, you may well be paying a much higher rate than necessary.

Trinity Financial regularly remortgages clients off expensive self-build rates with banks and building societies providing considerably lower rates and significantly cheaper monthly repayments.

We recently remortgaged one of our clients who had finished the build and moved into the property. Even though the property was not on the land registry, the client provided a completion statement and council tax bill to satisfy the lender's acceptance criteria.

Aaron Strutt, product director at Trinity Financial, says: “The mortgage lenders are offering some of the cheapest ever rates and they are much cheaper than the self-build rates.

“As soon as you mention the term 'self-build' to many of the lenders, they will either say they can’t help or ask a lot more questions. Our brokers have a list of banks used to remortgaging newly built properties.”

Which lenders have the most expensive self-build rates?

Many of the lenders provide fixed, tracker and discounted mortgages, that revert on to high variable rates. Newcastle Buiding Society's standard variable rate is 5.99% while Hinckley & Rugby's is 6.14%.  

How much of the property needs to be finished to remortgage?

Many of the lenders accept a self-build property once construction is complete and the property is in a habitable condition. This is subject to the property having a New Build Warranty or a Professional Consultants Certificate, with a satisfactory valuation report with valuer comments. 

What do the lenders class as habitable?

The lender's definition of a habitable property generally means being wind and weathertight and fully plastered. The property should have functioning services and at least one kitchen with a hot and cold water supply to a sink. It will also need adequate food preparation and storage facilities, plus a functioning bathroom with a bath/shower and WC.

Call Trinity Financial on 020 7016 0790 to arrange a self-build remortgage