Get the funding you need to build your own home
Whether you’ve got the skills and expertise to design and build a home from scratch or you plan to hire contractors to do the job, a specialist type of mortgage is needed. A self-build mortgage is the solution to any funding woes.
A self-build mortgage differs from a standard mortgage. Rather than receiving a lump-sum loan to cover the cost of a property, you receive the funds in stages as you progress through your building project. This way, you’re guaranteed to cover the costs of materials and labour.
While some of our clients are happy to get a mortgage on a new build or an existing property, we’ve had the pleasure of helping clients to get the funding they need to build their dream home.
The self build mortgage process
The self-build mortgage process has a few more steps compared to a standard residential mortgage. Here’s how it works:
- Plot Purchase: Initially, you may need to secure the land or plot where you plan to build your home. Some self-build mortgages can include financing for this stage.
- Staged Payments: Self-build mortgages release funds in stages, typically in line with different construction milestones. These stages might include the foundation, walls, roof, and completion.
- Interest-only Payments: During the construction phase, you usually make interest-only payments on the amount drawn down. This reduces your initial monthly costs.
- Valuations: Lenders may require periodic valuations of the construction progress to determine the release of funds for each stage.
- Transition to a Traditional Mortgage: Once the construction is complete, your self-build mortgage can be converted into a standard residential mortgage, which will cover the total value of the property.
Why work with our specialist self-build mortgage advisers?
As independent advisers, we have access to the whole of the UK market. We can browse the mortgage market on your behalf, using our expert knowledge of the lenders available to those wanting to build their own home.
By working with one of our self-build mortgage advisers, we can find you the best terms for the most competitive price.
Our service doesn’t end there. We’re here to help guide you through the entire process. From explaining your options and assessing your finances to ensuring your mortgage application complements your self-build plans.
If you’re ready to start the process, we’re on hand to help. Speak to one of our friendly advisors today.
Our promise to you
We can help you get the right funding for your project, so you can lay the foundations of your new home. Our advisers will see your project from design to completion.
Our team is on hand to:
- Help you understand the types of self-build mortgages.
- Provide fair, impartial advice on the best mortgage for your project.
- Ensure you understand how self-build mortgages work.
- Compare the lenders on the market.
- Break down the complex jargon.
- Find you the best deal for your circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Self build mortgage FAQs
Most lenders ask for a 25% deposit for a self-build mortgage to cover the added risk associated with a client building a property from scratch. Don’t let this deter you, though. We can help to find the right lender for your specific circumstances.
Building work is exempt from stamp duty tax. You only have to pay stamp duty if the value of the land exceeds £125,000. This is likely to be a lower amount than the stamp duty due on a completed property.