A £2.5m pilot scheme offering self-builders the chance to apply for a mortgage through their local authority with just a 5% deposit has gone live in Cherwell.
Until 11th May 2018, up to five people with a local connection to the district can apply for an accessible mortgage to build their own home at the UK’s largest self and custom build site in Graven Hill in Bicester.
The initiative has been launched by Cherwell District Council, which has allocated up to £2.5m in development finance to assist self-builders in the construction of their new homes. Pictured above is Council Leader Barry Wood, announcing the scheme at an event last month.
Kelly Watson, Assistant Director for Finance and Procurement, commented: “Having purchased Graven Hill and established the Graven Hill Village Development Company to deliver this pioneering project, launching this accessible mortgage scheme seemed like the next natural progression. At Cherwell we pride ourselves on exploring new and innovative solutions to help people realise their dream home and are willing to take proactive steps such as this to achieve that.
“We are working with a panel of lenders to indemnify up to 20% of each mortgage which means borrowers only need a 5% deposit. This opportunity will make the dream of a self-build home a reality for many people who have previously found the initial upfront costs to be too challenging.”
The six-step process will start with a local connections assessment, which will identify up to five applicants to proceed to the financial checks stage. From here, they will be put in contact with the Graven Hill Village Development Company to identify their plot before moving to their mortgage application, which is capped at £450,000.
The fifth stage of the process will involve exchanging and completing contracts with Graven Hill Village Development Company in order to begin constructing their home whilst the final process will comprise the mortgage advancement and ownership of the property transferring to the applicant.
Anyone interested in being considered for an accessible mortgage at Graven Hill has until 11th May to apply at: www.cherwell.gov.uk/selfbuildmortgage or for more information email: firstname.lastname@example.org.