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What to Expect

Self-Build Mortgages represent specialist lending and as such there are fewer lenders to choose from, however if you contact us we will find the most appropriate lender for needs and circumstances.

Structural warranties and guarantees

Before lenders will lend on newly builds, Banks and Building Societies normally require either confirmation that an acceptable building standards indemnity scheme is in place or confirmation that the consultant, architect supervising, can meet specified criteria.

We will establish which guarantees, warranties, providers are prepared to accept and the criteria that the consultant, architect supervising must meet.

Two main types of self-build mortgage

Self-Build Mortgages

Arrears-Based Mortgage

These are offered by the majority of lenders and allows borrowers to receive each stage payment after the stage has been completed.

Self-Build Mortgages

Advance Stage Payment Scheme

The borrower receives each payment before any stage has actually commenced. These type of mortgages are riskier for the lender, so are usually more expensive for the customer. The maximum loan to value generally for self builds is 75%, but this will depend on the lender. The loan value will be based on the final valuation. The loan amount can not exceed the total cost of purchasing the land and the cost of the building works.Funds will be released in stages, typically 4 or 5 depending on your personal situation:

Other self build mortgage criteria

While every self build mortgage lender will have its own specific set of criteria to be satisfied, most will require copies of the build plans and planning permission to be provided to their valuer on or prior to inspection of the land and throughout the property build stages.

Lenders also typically need to know if and when any existing mortgage commitments are to be repaid.

This is of particular significance for self build applicants, many of whom will not be in a position to redeem their current residential mortgage until their new property is complete.

Self-Build Mortgages

Call us today on 0800 987 5344 or complete our short enquiry form by clicking here and we'll be pleased to help you.