"There were many complex elements attached to the remortgage. The property’s structure for one, meant not all lenders were comfortable lending on it. We must remember that every self-build case Is an Individual project and they must be assessed accordingly"
- Robert Oliver - Dudley Building Society
The property is unique in that it features a steel portal frame with timber, framed with over 75% steel cladding to elevations, along with the roof clad in steel profile sheeting.
The applicants borrowed 54.84% LTV on an interest-only basis, switching to capital and interest on completion of the build.
The land was already owned by the applicants, and an initial release of £400,000 was required against the current land value of £575,000.
The build costs, along with an additional 20% contingency, totalled £1.68 million, with the applicants’ savings covering the shortfall.
Both applicants are employed in professional roles and receive a salary and bonuses.
Their current property is mortgaged, and the applicants will continue to reside there during the build. Because the applicants could provide evidence that they had savings to cover 12 months of mortgage payments while the build is completed, these were disregarded from the affordability assessment.
Robert Oliver, (pictured) Distribution Director at Dudley Building Society, said: “This case demonstrates how taking a flexible and personal approach to underwriting can benefit the client.
“There were many complex elements attached to the remortgage. The property’s structure for one, meant not all lenders were comfortable lending on it. We must remember that every self-build case Is an Individual project and they must be assessed accordingly.
“Our ability to lend on such a property demonstrates our commitment to helping brokers and their clients by offering a flexible and common-sense approach to self-build lending projects.
“Working together with Mayflower Mortgage and Finance, we were able to help the borrowers turn their self-build dream into a reality.”
Marc Gibbs, Associate Broker at Mayflower Mortgage and Finance added: “Using our expert knowledge in the self-build space and close working relationship with the Dudley, I knew that due to their fantastic flexible lending policy this would be a case they were able to support with.
“Working closely with Rob and the team we were able to think outside the box and holistically review how it would work on affordability. This provided an increased confidence, to both me and the client during the self-build application and underwriting process, giving them the peace of mind that they would have the funds available to complete their forever family home. An amazing outcome for the client.”
