Self Build Mortgage

More and more people are choosing the option of building their home rather than buying new or second hand using a self-build mortgage. The benefits of building your own home are that you can have it built to your exact specifications and are likely to save money.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Steps to a Self Built Home

1. Find a plot of land

Land in the UK is scarce, so finding a plot of land suitable for your house is often the most challenging part. Sometimes a bit of creative thought, such as approaching people who have land that might sell part of it to you and other word of mouth tactics such as speaking to estate agents and builders can be the best approach. Failing that, there are auction houses and databases, that sell and list plots of land for sale throughout the UK. Please ensure that any plot you are looking at has planning permission before you buy and is a big enough plot for your needs.

2. Design Your House

You’ll need an architect, structural surveyor and quantity surveyor to help with the design of your house, which is split into two distinct phases. First is the design of the structural watertight shell of your home and submission of the drawings for the necessary planning permission and building regulation approvals. The secondary phase is the interior of the house including kitchens, bathrooms and lighting.

3. Organising Your Self Build Mortgage

Once you’ve got your design, approval and a full build plan and costs, you can start to think about getting your financing in place. Prior to applying for the self build mortgage, you should speak to us. We can get you a mortgage decision in principle and discuss the financing process with you. There are many different ways in which you can finance the build. It’s best to speak to us about them, but essentially the lender will lend you a percentage of the initial land aquisition costs, then release staged funds in advance or in arrears. Once you are approved and you have the necessary warranty and insurance in place, you can move onto the next step – the build.

4. The Build

Depending on what type of house you are going to build and how adventurous you are, you will either project manage the build yourself, working with architects, surveyors and the various trades, or you will appoint a project manager to co-ordinate the whole project. We would clearly advise you to take the latter option, so all you have to worry about is organising the move in when the house is finished!

If you are thinking about building your own home, call us today to get a self build mortgage quote and financing plan.