Earl Shilton Building Society

Earl Shilton Building Society is a small UK building society that offers savings accounts and ISAs to savers, and mortgages to home buyers, with a long standing specialism in self build and custom build mortgages, the loans used when you are having your own home constructed rather than buying one already built. Like most small societies, it does not have a branch network to rival the big banks, and its products are typically available direct or through a mortgage broker. Its website address is www.esbs.co.uk¹.

The society is best known in the mortgage market for self build and custom build lending. The Building Societies Association lists Earl Shilton among the building societies that provide finance for self and custom build projects, alongside names such as Chorley, Darlington, Loughborough, Melton Mowbray, Suffolk and Hanley Economic². Its Financial Conduct Authority Register entry lists two permissions: entering into a regulated mortgage contract as lender, and accepting deposits¹.

One recent change matters to anyone considering an Earl Shilton mortgage: the society has paused its direct mortgage advice service for new borrowers, so new applications are advised by a mortgage broker rather than by the society itself³.

What Earl Shilton Building Society offers

Earl Shilton Building Society's business is the classic building society model: it takes in savings and lends against property. Its two permissions, accepting deposits and lending on regulated mortgage contracts, cover exactly those two sides of the model¹.

On the savings side, the society offers savings accounts and ISAs. The rules that govern these products are the same wherever you save: cash ISAs sit within your annual ISA allowance, and ordinary savings accounts pay interest that may be taxable above your personal savings allowance. How ISAs work in general, including the allowance and the different types, is covered in our guide to ISAs, and the full range of account types is explained in our guide to savings accounts. Earl Shilton's current accounts, rates and terms are published on its own website, esbs.co.uk, and this page does not repeat them because they change frequently.

On the lending side, the society offers residential mortgages, and it has a long standing specialism in self build and custom build mortgages, the loans used when you are having your own home constructed rather than buying one already built². The mechanics of mortgages in general, from how a mortgage works to how much deposit you need, are covered in our guide to mortgages, and the process of buying a home in our guide to buying a home. Earl Shilton appears in our directory of banks and building societies alongside the other lenders in the UK market.

Self build and custom build mortgages

A self build mortgage is a loan for a home you are having built yourself, whether from scratch, as a conversion or renovation, a knock down and rebuild, or a project that is already part built. A custom build is similar but usually involves working with a developer or landowner who provides a serviced plot. The Building Societies Association lists Earl Shilton as one of the building societies that provide finance for these projects².

The key difference from an ordinary mortgage is how the money arrives. As official guidance for consumers puts it, "the lender releases money to the borrower in stages not as a single amount as the build progresses"⁵. This protects both sides: you do not pay interest on the whole loan from day one, and the lender only advances money against work that has actually been done and verified. Each release usually follows a valuation or inspection confirming the stage is complete.

The typical stages run from buying the land, through foundations, walls and a watertight roof, to the finished home.

The number of stages, the amount released at each one and what evidence the lender needs vary from deal to deal, so the details of Earl Shilton's own stage structure matter more than the general pattern. Its self build mortgage terms are published on its website and are explained by the brokers who arrange its loans³. Because the money arrives in stages, budgeting for a self build is different from buying a finished house: you need working capital to keep the build moving between releases, and any delay in a stage being signed off delays the next payment.

Who can get an Earl Shilton mortgage

As with any lender, getting a mortgage depends on your circumstances: your income and outgoings, your credit history, the deposit or equity you have, and the property itself. Lenders run affordability checks and credit checks as standard when you apply for a mortgage⁷. Small building societies often specialise in cases the big banks find awkward, such as self build projects, unusual properties or self employed borrowers, but each has its own criteria and Earl Shilton's are set out in its lending terms.

There are also situations where extra help exists. If you are on benefits and struggling with mortgage interest, you may be eligible for a Support for Mortgage Interest loan, a government loan that helps with the interest part of your payments⁸. If you fall behind, free debt advice is available from charities such as Independent Age for older borrowers, and the earlier you contact the lender the more options usually remain open⁸.

One point worth knowing if you already have a mortgage elsewhere: some lenders will only deal with you through their own products or approved intermediaries. For example, Skipton Building Society grants consent to let only on mortgages held directly with it⁹, a reminder that permissions and consents do not transfer between lenders. If you want to let out a home that Earl Shilton has lent on, ask it or your broker what its rules allow before doing so.

Loan size, term and loan to value

Two numbers shape any mortgage: how much you borrow and how that compares with the value of the property. The second is the loan to value, or LTV: a £90,000 loan on a £100,000 property is a 90% LTV mortgage. The lower the LTV, the more equity or deposit you have, and the wider the choice of deals tends to be. How deposits and LTV work in practice is explained in our guide to mortgages.

The term is how long the mortgage runs. Terms on self build mortgages can be short or long: one society's self build product, for example, runs from a minimum of 2 years to a maximum of 40 years¹⁰. The maximum loan and the maximum LTV vary by lender and by product, and often by the type of project, with self build lending typically more conservative than lending on finished homes because of the risks during construction.

Earl Shilton's own minimum and maximum loan sizes, LTV limits and terms are published in its mortgage terms on esbs.co.uk and by the brokers who distribute its products³. This page deliberately does not quote them, because they change; check the current figures before making plans based on them.

Interest-only and repayment: how the split works

A mortgage is repaid in one of two basic ways. On a repayment (capital and interest) mortgage, each monthly payment covers interest and some of the loan itself, so the debt is cleared by the end of the term. On an interest-only mortgage, as Independent Age explains, "borrowers just repay the interest on the mortgage", with the full loan payable at the end of the term⁸. Interest-only needs a credible plan for repaying that lump sum, and lenders will ask what it is.

Many building societies also offer a part and part arrangement. Suffolk Building Society, for instance, allows loans on "a capital and interest, interest only or part capital/part interest only basis"¹¹, and this flexibility is one of the things small societies are often used for. On a part and part mortgage, part of the loan is repaid monthly and part is interest-only, so a smaller lump sum remains at the end.

Self build mortgages add a further twist. Because you are not living in the finished home while it is built, some lenders allow interest-only payments during the build phase. Chorley Building Society's self build product, for example, permits interest only payments during the build, with the mortgage reverting to capital and interest once the final funds are released or after a set period, whichever comes first¹⁰. Whether Earl Shilton's self build loans work this way is in its own terms, but staged builds and temporary interest-only periods commonly go together.

How the charges work, including arrangement and revaluation fees

A mortgage's costs are more than its interest rate. The main charges to look for are these:

• Arrangement or product fee: a fee for taking the deal, which can sometimes be added to the loan rather than paid upfront. Which? notes that fees vary widely between deals and that a low rate with a high fee can cost more overall¹².
• Valuation fee: the lender charges for someone to value the property. These "can vary according to the property value but tend to be a few hundred pounds", and some lenders offer free valuations¹³. At some societies, valuation fees are payable on application and are non-refundable, so if the purchase falls through the money is lost¹⁴.
• Revaluation fees: if you come back for a further advance or a new deal and the lender needs a fresh valuation, a revaluation fee may apply. At Market Harborough Building Society, for example, this fee "will vary and will be established at the outset"¹⁵.
• Early repayment charge: a penalty if you overpay beyond a limit or leave the deal during its incentive period. These are "often structured so that the fee falls each year"¹².
• Legal and completion costs: solicitor's fees and, on some deals, lender legal fees.

On a self build mortgage, expect more valuations than on an ordinary purchase, because the property is inspected at each stage before money is released. That can mean more valuation fees, so it is worth asking at the outset how many inspections the deal requires and what each one costs. Earl Shilton's current fee schedule is on its website and through its brokers³; ask for the total cost picture, not just the headline rate, before committing.

Overpayments and what happens when a deal ends

Most mortgages let you pay extra each month or in lump sums, and overpaying reduces the total interest you pay over the life of the loan. The details differ by lender. Principality Building Society describes its overpayments as flexible, with the option to stop overpaying at any time, and notes that regular monthly payments do not change when you make an overpayment¹⁶. Coventry Building Society treats smaller extra payments as overpayments and larger ones differently depending on their size relative to your monthly payment¹⁷. Skipton Building Society warns that lump sum overpayments could trigger a recalculation of your monthly repayment amount¹⁸.

The limit to watch is the early repayment charge. Leeds Building Society tells borrowers that if they are making an overpayment, "there may be conditions, fees or early repayment charges"¹⁹, and Market Harborough Building Society notes that a charge may apply if you overpay more than the terms allow or switch product or lender during a special rate period¹⁵. A common pattern is an annual overpayment allowance, often a percentage of the outstanding balance, with charges only above that.

When a fixed or discounted deal ends, the mortgage usually moves to the lender's standard variable rate unless you choose a new deal. At that point you can look for a new product from the same lender, known as a product transfer, or remortgage to a different lender altogether. There is no charge for letting a deal simply expire, but leaving early usually triggers the early repayment charge, so the timing matters. Earl Shilton's overpayment allowances and end-of-deal options are in its mortgage terms³.

Buildings insurance is usually a condition of the loan

If you own your home, "you'll need buildings insurance. It's usually a condition of your mortgage", as Independent Age puts it²⁰, and most mortgage lenders will require you to hold it²¹. Which? notes that lenders generally require it from the date of exchange²¹. This is not optional paperwork: the lender has a financial interest in the property and needs it insured against damage.

On a self build, the insurance picture is more involved. Suffolk Building Society, which also lends on self builds, describes a buildings insurance policy as "a requirement of our mortgage contract"²², and self build lenders commonly require contract works cover before works start, with full buildings insurance compulsory once the build is complete. If there is an existing structure on the plot, insurance may need to be in place from completion of the mortgage. Ask Earl Shilton or your broker exactly what cover the deal requires at each stage, and remember you are free to buy that insurance from any provider, not just one the lender names.

Remortgaging and legal costs

Remortgaging means moving your existing mortgage to a new deal, either with your current lender or a different one. The legal work is simpler than on a purchase because there is no buyer and seller, but solicitor's fees still apply, and some lenders reduce or remove them. Suffolk Building Society says that for customers remortgaging an existing property, "we typically offer fee-assisted legal services on our remortgage deals"²². Scottish Building Society goes further, offering a free basic legal service on remortgages unless certain restrictions apply, meaning no solicitor's fees to pay²³.

Whether Earl Shilton offers anything similar on its remortgage deals is in its current terms³. Where a lender does offer free or assisted legal services, check what is included: the basic service usually covers the standard remortgage work only, and anything unusual about the property, such as a title issue, can fall outside it and generate fees. As with all mortgage costs, the total picture matters more than any single incentive.

Advice now comes through a mortgage broker

One recent change matters to anyone considering an Earl Shilton mortgage. The society has paused its direct mortgage advice service for new borrowers, and its own product page states:

In practice this means new borrowers reach Earl Shilton's mortgages through a broker rather than by dealing with the society directly from the start. The society's products and criteria still apply, but the application is advised by the intermediary. Existing borrowers are not affected in the same way and can still deal with the society directly for their current mortgage. If you prefer to deal with a lender without a broker, this is a material difference to weigh; if you were going to use a broker anyway, nothing much changes. A whole-of-market broker can tell you how Earl Shilton's terms compare with other self build and specialist lenders.

Contacting the society and making a complaint

The society's website, www.esbs.co.uk, carries its current contact details, product pages and terms¹. For mortgage enquiries from new borrowers, the route is through a mortgage broker, as above³. For savings, ISAs and existing mortgages, contact details are on the website.

If something goes wrong, complain to the society first, in writing or by whatever channel it provides, and give it a chance to put things right. Every financial firm must have a complaints process. If you are not satisfied with the final response, or if eight weeks pass without one, you can take the complaint to the Financial Ombudsman Service, the free and independent body that rules on disputes between consumers and financial firms. Our guide to consumer protection in UK financial services explains how the process works and what the ombudsman can and cannot do.

If the problem is affordability rather than service, free help exists: debt charities, and for older borrowers Independent Age, can talk through the options when mortgage payments become unaffordable⁸. Organisations supporting people facing repossession, such as Surviving Economic Abuse, also publish guidance on the process and your rights²⁴.

How money with Earl Shilton is protected

Money you save with Earl Shilton Building Society is protected by the Financial Services Compensation Scheme, the UK's statutory safety net for depositors. The scheme pays compensation to savers if a bank or building society fails and cannot return their money. The current coverage level and how it applies across accounts is explained in our guide to consumer protection.

Two practical points follow. First, the protection applies per person per banking licence, so if you hold savings with more than one society that share a licence, the limits add together rather than multiply. Earl Shilton is a separate society in its own right, so its deposits count separately from any you hold with a bank or another society¹. Second, the protection covers deposits, not investments, and it covers the failure of the firm, not falls in the value of anything you buy.

Mortgage borrowers have a different protection: the society must follow the mortgage rules on affordability, arrears handling and foreclosure¹. If you disagree with how it has treated you, the Financial Ombudsman Service can hear the case. And if you have lost track of an old savings account with the society, the Building Societies Association notes that dormant accounts can be traced, so it is worth asking².