Build Bungalow Self

A build bungalow self allows the buyer to purchase their spacious new home at cost price, i.e. the cost of the building of land for sale, materials and labour. Discounting the effects of inflation, self-builds tend to save around 30 percent of the value of their finished house by building it themselves, a saving brought about by taking away the profit developers make on most new houses, along with the VAT savings made on materials.

Of course, you need to get outline planning permission – most lenders require it before offering a mortgage. Detailed permission can wait until later, although again lenders will want it before releasing funds. In many areas throughout the country there is a real problem in finding land that is available and also suitable for building your ideal home. This can prove to be a difficult task because build bungalow self land is difficult to find and quite expensive. You can search the local papers and estate agents but a self build land finding database is the best option.

As part of the self build finance the lender usually advances the money to you in five steps. This is in order to stop cash flow being a problem. As you might have guessed, you need to plan carefully the costs that you may incur in building the house. You won't get the mortgage unless you've done this anyway, but your instalments might not be sufficient if you have underestimated your costs or suddenly need to buy new materials.

There are three basic choices of paying interest, namely Variable rate, where the rate can go up or down, fixed rate, where the rate is fixed for a pre-determined period, and capped, where the monthly payments have a maximum for a guaranteed period.

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