Self Build Mortgages
Secure the funds for your dream home to become a reality
You’ve found the land, you’ve got the plans, and you’ve seen the vision. Now, you just need a self-build mortgage to bring your dream home to life. You’re probably impatient to start building, so securing a loan to fund your build costs will be a priority. We’ll help you tick that job off your to-do list and get the funds you need as quickly as possible.
Finding a self-build mortgage
Finding a self-build mortgage can be a lengthy and complex process. There are fewer self-build mortgages than standard mortgages, and you’ll need to jump through more hoops to obtain one. The criteria for self-build mortgages are typically more demanding, with extra boxes to tick and paperwork to provide. However, with our help, these factors won’t be a concern. As brokers, we can access a wider pool of self-build mortgage lenders than you do. We also have specialist insight and experience, which we’ll use to guide you through the process.
We’ll source and advise you on the most appropriate self-build mortgage and manage your application, ensuring you have all the necessary paperwork and helping with potential obstacles. With our help, you’ll save time, benefit from access to broker-only deals, increase your chances of success and enjoy a less stressful experience than trying to arrange a self-build mortgage yourself. Leave the mortgage to us, and you can concentrate on planning the build.
For help securing your self-build mortgage, get in touch for a free, no-obligation chat with a mortgage adviser.
Self Build Mortgages FAQs
What is a self-build mortgage used for?
A self-build mortgage is designed to provide the funds to build a property you plan to live in. You can also use the loan to help pay for the land you intend to build on. Some lenders will provide a self-build mortgage for renovation work or property conversion.
If you plan to build a new home and sell it, you’ll need development finance [link to Development finance page] instead.
How much can you borrow with a self-build mortgage?
The amount you can borrow will depend on your income and expenditure, credit rating, any outstanding debts and the estimated value of the completed property. The maximum is typically 60% to 70% of the completed value or potentially up to 80% if you already own the land.
How does a self-build mortgage work?
Unlike a standard residential mortgage, a self-build loan is released in instalments at key construction stages. This approach minimises the risk to the lender while providing you with the cash when you need it. The staged payments are either paid in advance (at the beginning of each stage of purchase and construction) or in arrears (upon completion of each stage of purchase and construction). The typical stages for funds to be released are:
- Purchasing the land
- Excavating and completing the foundations
- Erecting the walls to eaves height
- Roofing, waterproofing and windproofing
- Completing the internal works – plumbing, electrical works and plastering
- Certified completion
What will I need to apply for a self-build mortgage?
As well as details on your financial situation, the lender will want in-depth information on your building project. This information could include all or any of the following: proof of the planning permission, drawings and specifications, building regulations approval, a structural warranty, site insurance, cost projections, schedules, a risk assessment and a contingency plan.
