The maximum initial release would be up to 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.

Representative Example

A mortgage of £245,200 payable over 25 Years initially on this Variable rate product for 3 years at 6.24% and then on our Standard Variable Rate (SVR), currently 7.49% for the remaining term of the mortgage, would require 36 monthly payments of £1,615.99 and 264 monthly payments of £1,793.40.

The total amount payable would be £533,591.28 made up of the loan amount plus interest (£286,432.28), a product fee of £1,499, a valuation fee of £380, other lending fees of £30 and a mortgage exit fee of £50.

The overall cost for comparison is 7.3% APRC representative

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.

Contact us

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