Self Build Mortgages
Self Build Mortgages: Develop and build your own house
This type of mortgage is specifically designed for borrowers wanting to build a property for them to live in. Typically, the lender will, depending on affordability, valuation and other criteria, advance upto 75% of the land and build cost for the whole project.
Building your own home
The applicant will usually need to prove from the beginning that they have the full 25% required to complete on their responsibilities. At each stage of the build the lender will value the current position and confirm that everything is being completed satisfactorily before they release the next amount of money (known as a tranche) for the applicant to continue with the build. This process continues at each stage (normally 5) until the build is complete. The property is then checked and providing all aspects are correct a completion certificate issued. At this point, if required our mortgage brokers can arrange for the borrower to refinance the self-build mortgage onto a normal residential mortgage which will often have slightly better interest rates.