What happens after my property is built?

After your property is built, habitable and valued by a RICS qualified surveyor you’ll be able to remortgage to a traditional residential mortgage and repay the self-build loan.

What are the benefits of a self build mortgage?

There are multiple benefits to a self-build mortgage with the most common one being you can build the exact house you want in the location of your choice. This means there’s no need to try and fit your dream house into an existing building by renovating. Another benefit of a self-build mortgage is that you only have to pay stamp duty on the value of the land you’ve bought, rather than the total value of the land and property. This can means big savings for those looking at more expensive, completed houses.

Do I need to sell my current house?

This will depend on how you want to finance the build and how much you have in savings. As with all mortgages, you will need a deposit and some people choose to sell their current property to release equity for the deposit on their self-build loan. If you’d like to continue to live in your current home while your new house is being built there are options such as a bridging loan, or if you’ve paid off your current mortgage, you can remortgage your current property.

When should I start to think about self-build finance?

The best time to start thinking about finance is when you decide that a self-build property is something for you. Just like looking for a house, you’ll need to know what lenders will let you borrow before you start to design your dream home. After all, you don’t want to design your dream home and then find out it’s not affordable.

How much can I borrow?

As with all financial products, this will depend on your circumstances so get in contact with us and we can give you an indication after a conversation with one of our advisors. We can then follow up with a more accurate number once you’ve decided on a number of factors which we will run through with you. We have experience in arranging self-build mortgages and residential conversation/renovations from £750,000 to in excess of £2,000,000. The amount you can borrow isn’t limited by the current value of the land and you can typically borrow up to 80% of your project costs.

Does the construction method affect my self-build mortgage?

The construction method of your new house won’t necessarily affect your chances to find, and be accepted for a self-build mortgage however it can limit your borrowing options depending on the construction method you choose. Most modern and traditional building systems will be perfectly acceptable and we will work to find a lender that can work with your chosen construction method.

What extra costs can I expect??

The cost of materials, labour, equipment and the land it sits on are usually the first costs you consider when you think about building your own property. However there are some other costs which are usually forgotten about, these include: Legal fees Mortgage arrangement fees Planning applications (if not already submitted) Architects fees Surveying Fees Building regulation inspections Lender interim inspection fees - especially for arrears self-build mortgages

Self Build Mortgage Broker | Finance To Build Your Dream Home

Page Summary:

Building your own home or developing a small site? We help you secure the right self-build mortgage, tailored to your plans, timescales, and cashflow. Whether it’s your first project or your fifth, we make the funding side simple.

Whole-of-market access, including private and specialist lenders
Support for single units, multi-plot sites, or part-finished builds
Stage-release funding to match your build schedule
Guidance on lender requirements
Clear advice on loan costs, timelines, and exit options

We’ll structure your finance around your build, not the other way round. Let’s get it right from day one.

What is a self build mortgage?

A self-build mortgage is a mortgage that allows you to borrow money to buy a plot of land and build a house on it. The main difference between a self-build and a traditional residential mortgage is that with a self-build mortgage, the funds are released upon reaching certain stages in the construction of the property.

Self-Build Mortgage Stages

Typical stages of a self build mortgage:

Land purchase – the money to purchase the land where you want to build your property.
Preliminary costs and building foundations/substructures – setting the foundations, project management, plant hire and connection of utilities (if required).
Construction to first floor level.
Construction to roof level- inclusive of roof.
Installing of all windows and doors to ensure the property is wind and watertight.
First fix and plastering – getting the plastering of the building complete as well as the first set of fixtures (pipes for plumbing, meter box installation, cables etc)
Second fix and completion – adding the final fixtures and fittings to the building so that it becomes a home.

Self-build Mortgage Criteria

Self-build mortgage lenders will have certain criteria when it comes to the location and construction of your self-build property, as well as the usual host of affordability, income assessments and credit checks. Some other self-build specifics you’ll need to have ready to show lenders include:

Copy of your planning permission
Copy of construction drawings and specs
Copy of total project cost estimate
Details/contract from the Contractor
Copy of Building Regulations approval
Copy of site self-build insurance and structural warranty
Architect’s professional indemnity cover
SAP calculation

FAQs

What happens after my property is built?

After your property is built, habitable and valued by a RICS qualified surveyor you’ll be able to remortgage to a traditional residential mortgage and repay the self-build loan.
What are the benefits of a self build mortgage?

There are multiple benefits to a self-build mortgage with the most common one being you can build the exact house you want in the location of your choice. This means there’s no need to try and fit your dream house into an existing building by renovating.

Another benefit of a self-build mortgage is that you only have to pay stamp duty on the value of the land you’ve bought, rather than the total value of the land and property. This can means big savings for those looking at more expensive, completed houses.
Do I need to sell my current house?

This will depend on how you want to finance the build and how much you have in savings. As with all mortgages, you will need a deposit and some people choose to sell their current property to release equity for the deposit on their self-build loan. If you’d like to continue to live in your current home while your new house is being built there are options such as a bridging loan, or if you’ve paid off your current mortgage, you can remortgage your current property.
When should I start to think about self-build finance?

The best time to start thinking about finance is when you decide that a self-build property is something for you. Just like looking for a house, you’ll need to know what lenders will let you borrow before you start to design your dream home. After all, you don’t want to design your dream home and then find out it’s not affordable.
How much can I borrow?

As with all financial products, this will depend on your circumstances so get in contact with us and we can give you an indication after a conversation with one of our advisors. We can then follow up with a more accurate number once you’ve decided on a number of factors which we will run through with you. We have experience in arranging self-build mortgages and residential conversation/renovations from £750,000 to in excess of £2,000,000.

The amount you can borrow isn’t limited by the current value of the land and you can typically borrow up to 80% of your project costs.
Does the construction method affect my self-build mortgage?

The construction method of your new house won’t necessarily affect your chances to find, and be accepted for a self-build mortgage however it can limit your borrowing options depending on the construction method you choose. Most modern and traditional building systems will be perfectly acceptable and we will work to find a lender that can work with your chosen construction method.
What extra costs can I expect?
The cost of materials, labour, equipment and the land it sits on are usually the first costs you consider when you think about building your own property. However there are some other costs which are usually forgotten about, these include:
- Legal fees
- Mortgage arrangement fees
- Planning applications (if not already submitted)
- Architects fees
- Surveying Fees
- Building regulation inspections
- Lender interim inspection fees – especially for arrears self-build mortgages