Mortgages for self builds throughout the UK
Make your dream home a reality
Building your own home is not for the faint-hearted. And on top of everything else, you’ll need to take out a special self-build mortgage to finance it.
As you might expect, self-build mortgages work differently from house purchase mortgages. Rather than getting all the cash upfront, your lender will release it in stages to fund the construction. These stages might include buying the land, right through to decorating the interior – and everything in between.
To make things more complicated, your lender may want to pay after each construction stage is successfully completed. Of course, most borrowers prefer payment in advance, as it puts less financial strain on them, but not all lenders will agree to it. It’s another aspect of your planning that will need careful thinking and a thorough assessment of what your lender is prepared to offer.
Get in touch with our staff today for more information about mortgages for self builds.
Your deposit and your plans
Because self-build mortgages are relatively risky for the lender, you will need a deposit of at least 10% – and the most attractive deals require 40% or more.
Most lenders will also expect you to have all the relevant planning permission in place before you approach them, and to see detailed plans. They will expect you to employ professional builders and other contractors rather than doing the work yourself. It’s a good idea to build in a contingency budget of around 10% to cover the cost of any unexpected expenses.
Enjoy the rewards
There’s no doubt that self-build projects can involve extra risks and headaches. But with our help you’ll be more likely to achieve your dream home and enjoy the rewards.
A fee of £95 is payable for your initial consultation with a further fee of up to £195 on completion dependant on the work required to secure your mortgage. Commercial mortgages and some buy to let mortgages are not regulated by the FCA. Mortgages Made Easy also handles mortgages for commercial purposes.