Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Vernon Building Society Reduces Self-Build Mortgage Rates by 0.15%

Vernon Building Society has announced a 0.15% reduction in its self-build mortgage rates, with discounted pricing now starting from 5.75%. The rate cuts apply across the society’s self-build mortgage products.

The updated self-build mortgage range includes:

• BuildLoan 1.85% lifetime discount at 5.75%, 80% loan to value (LTV), £1,999 fee, and a 2% early repayment charge (ERC) for one year.
• BuildLoan (accelerator) 1.66% lifetime discount at 5.94%, 80% LTV, £1,999 fee, and a 2% ERC for one year.
• Mayflower large loan 1.76% lifetime discount at 5.84%, 70% LTV, 0.25% fee, and a 2% ERC for two years.

Vernon Building Society’s self-build mortgage range supports a variety of projects, including modern and non-standard construction, conversions, renovations, and rebuilds. The products offer stage-release funding of up to 85% per stage, with interest-only payments during the build process. This structure is designed to help customers manage costs as work progresses.

Additionally, the society allows a portion of a borrower’s savings to be ring-fenced and included in affordability assessments, without requiring the funds to be spent upfront. This feature can help improve borrowing power for more complex projects.

Earlier in the month, Vernon Building Society also launched free legal services for remortgages.

These changes may be of interest to UK letting agents and inventory clerks working with clients involved in self-build or renovation projects, as the updated mortgage products could impact funding options and project timelines.