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Maximum Loan to Value:

75% of land value

75% of each build stage costs / interim valuation 

80% maximum loan to final value at final stage / completion of the build

A valuer reinspection fee is payable on completion of each build stage before that stage’s funds can be released.

Initial Rate

4.74% which includes a 0.46% discount from our standard variable rate for 2 years followed by our Standard Variable Rate for the remainder of the term, currently 5.20%.



Early Repayment Charge

If the mortgage is repaid in part or full during the initial period then an early repayment charge of 2% of the capital balance will be payable. 
If the mortgage product is transferred to a mainstream residential mortgage product (which may require payment of a Product Fee) with Vernon Building Society then this charge will be waived providing that the product transferred to also has an initial discount or fixed rate period with early repayment charges.


Arrangement Fee £1,999 - This can be added to the loan on completion however this will result in interest being charged on it making the overall fee greater over the term of the mortgage.

For a comprehensive list of other fees and charges that may apply to you as a mortgage customer, click here.


Loan cannot be used for debt consolidation

No prior impaired credit history

Applicant(s) must have been in continuous empoyment for at least 6 months and with current employer for at least 3 months

Minimum age of applicant: 18

Maximum age at maturity: 85

Minimum term: 5 years, maxmimum 35 years

Minimum loan size: £200,000

Maximum loan size: £750,000

Property location: England & Wales

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Representative Example

A mortgage of £389,000, payable over 22 years based on an interest-only repayment basis on an initial rate of 4.74% which includes a 0.46% discount from our Standard Variable Rate for 2 years followed by our Standard Variable Rate, currently 5.20%. The first 2 years would require 24 monthly payments of £1,536.55 followed by 240 monthly payments of £1,685.67.

The total amount payable would be £833,342.00 made up of the loan amount plus interest (£441,113.00) Arrangement Fee (£1,999), Standard Valuation Fee (£485), Valuer Reinspection Fees x 5 (£325), Solicitor Fee (£250), Funds Transfer Fee (£15) and a Mortgage Exit Fee (£155).

The overall cost for comparison is 5.3% APRC representative.

Vernon Building Society
19 St Petersgate

Tel: 0161 429 6262

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.


Vernon Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (registration number 195475).  You can check this on the Financial Services Register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

For independent information about financial products and services visit