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The attraction of building a house in the location of your choice, having an input into the design and seeing your ideas become reality for many brings a great sense of achievement.
Obtaining a Self Build Mortgage need not be difficult with some lenders allowing you to borrow up to 95% of land and build costs. Cash flow need not be a problem as payments can often be arranged to meet build costs at appropriate stages of the Self Build development. In addition it is often possible to stay in your existing property until your new house is built.
When searching for a suitable policy, it is always important to shop around for mortgage comparisons on the various different offers that are available.
Unlike most standard mortgage deals, customers use the money that is loaned to them to assist with every stage of building the property, which is built to their own specifications.
The payments for these self build mortgages are also handled differently, and the money will gradually be sent to customers in instalments to finance the different stages of the constructions.
Here as an example of the different stages that the money may be released at:
- The purchase of the land the property will be built on
- Building the foundations of the property
- Building up to the property itself
- Making it weather proof
- Plastering and interior construction
- Completing the construction
Although they are becoming more widely used, it is worth remembering that self build mortgages are still a relatively niche product. Finding and taking out a suitable self build mortgage is also still a slightly more complicated affair and more require more work in terms of procedures and completing paperwork.
Some Potential Advantages of Self Build Mortgages
- Building a property from scratch can be considerably cheaper than purchasing if handled correctly. The property may be worth up to 30% more than the cost of its construction in some cases
- Customers may be able to save money on stamp duty if the cost of the land is below a certain amount
- Due to the relatively low cost of construction, customers may be able to have almost 95% of all construction costs covered by their mortgage
Our easy to use product comparison tables will help you find the most appropriate UK mortgage deal by introducing you to a UK qualified mortgage broker who offers:
- Mortgage quotes from leading UK lenders
- Expert mortgage advice
- Mortgage rates not available on the high street
Please use our self build mortgage enquiry form to get advice and quotes today.