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Our partners are firmly committed to the self build market with arrangements with a host of lenders to help borrowers in UK find the self build mortgage to build their own homes, and
they are constantly looking at other products to serve this growing market. There has been an enormous growth in self build in recent years. Today, it's estimated that as many as 1 in 3 of the individuals who will live in them have never lifted so much as a brick in the process. If you are thinking of having your own home built, you will need to know exactly what is involved. Many people feel daunted by the prospect, but if you follow a logical sequence of events and plan carefully, you will succeed. Maybe your very own dream self build home has been bubbling away in the back of your mind for ages. But if you are serious about wanting to translate that dream into reality, you must do some serious homework on self build mortgages.
Firstly, you have to understand what self building means; it is not the same thing as do-it-yourself, in fact, most lenders will only consider you for a self build mortgage if you are planning to build your own home yourself. Of course you can be involved in the project and there may be quite a few practical tasks you will want to tackle. But what is as important for you as for your lender, is that your new home is professionally designed, built and certified. The next thing to bear in mind is that all lenders who operate in this specialist area require you to utilize some of your own money for your project, however don't be put off majority funding is always available, subject to status. Funding for the initial purchase of the land is available with of course the cost of the building work until completion, with self build you will not after all be paying a developer's profit margin because by self building, you are effectively your own developer.
The main difference between self build mortgages and
a house purchase mortgage is that with a self build
mortgage money is released in stages as the build progresses
rather than as a single amount. Some lenders will lend
you money to purchase land. After this, the money for
the build is released in a series of stages. These can
be fixed or flexible depending on the lender but usually
there are five. During the build you can borrow larger
portion of the cost of the value of the house as the
project progresses, depending on the chosen lender.
There are two methods by which the money can be released
during the build - at the end of each stage or at the
start of each stage known as arrears stage payments
and advance stage payments respectively. In the arrears
stage payment method, the money for that stage is released
after the stage has been completed and a valuer has
visited the site. This can cause some self builders
to have cash flow difficulties. And here comes the real
good news for UK self builders. We have partnered with
buildstore, UK's leading mortgage and building plot
selling site. Whether you are living in Durham, Essex,
Hampshire or Kent, you can now go for UK's most cost-effective
mortgage plan and buy building plots and lands right
here.
More information on self build mortgages Click here
Find your dream plot of land Click here
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