What is a self-build mortgage:
A self-build mortgage is a loan specifically designed to finance the construction of a new home. It differs from a traditional mortgage because the funds are released in stages, typically as the building progresses, rather than as a lump sum. This staged release helps manage costs
Self-build mortgages are available to a wide range of self-builders. Whether it’s a competent DIY approach, custom build, self-managed right through to fully managed by a main contractor.
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Timber frame and timber clad
Non-traditional such as straw bale, rammed earth, cob
Modern Methods of construction built off-site
Structurally insulated panels
Insulated concrete forms
Builds that contain renewables such as photovoltaics, solar thermal, heat pumps, etc.
Partially built properties
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No, the same affordability calculations are used for a standard residential case. The same criteria for income and expenditure applies. We can, however, disregard the current mortgage or rent payment for the apps if they plan to complete the build and sell their residential property within 12 months of the build commencing
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Self-build mortgages are for residential purposes only, applicants will need to have at least a 25% deposit or if the land already owned this can be used as the deposit – you must have a minimum 10% contingency
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Yes, we can consider builds that have been started. We can also consider renovations, conversions and knock down/re-builds.
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Yes, the mortgage can be on interest-only throughout the duration of the build to help keep repayments down.
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Once your self-build is complete and you achieve the appropriate energy certificate, you can benefit from lower interest rates.
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First Time Buyers
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