Beginner’s guide to self-build mortgages
Self-build mortgages are a type of specialist mortgage used to finance individual building projects such as building a new home on a plot of land, custom-build schemes, bespoke eco schemes, and renovations.
“Unlike a traditional residential mortgage where a single advance is generally made on completion of purchase, self-build mortgage payments are released in stages,” explains Daniel Capstick, mortgage manager at Ecology Building Society. “These staged releases reflect the progress and increasing value of the lender’s security (your new home) from plot purchase to obtaining detailed planning consents and of course the build phases through to completion.”
Self-build mortgages are suitable for self-builders doing the majority of the building work themselves, as well as those who act as project managers on their own builds, hiring tradespeople directly to do the hands-on graft.
There are currently about 26 mortgage providers in the UK which will lend on self-build projects but self-builders need to do their research before they apply.
“As with any normal residential mortgage, some lenders have a really strict criteria and if you fall outside of this, your application will not
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