Building your own home can be incredibly exciting – but arranging the finance is very different from buying a property that is already built.
 
Only a relatively small number of lenders offer specialist self-build mortgages, so getting the right advice at the outset can make a real difference.
 
Unlike a normal mortgage, the money is usually released in stages as the build progresses, rather than all at once. Depending on the lender and the project, funding can potentially cover a significant proportion of both the land purchase and construction costs, subject to the expected value of the finished property.
 
Many specialist self-build lenders also work through brokers or specialist intermediary channels, which means the application needs to be carefully packaged with details of the build costs, plans, planning permission and projected end value.
 
And the mortgage advice shouldn’t stop when the initial loan completes. At Key Mortgage Advice, we stay involved throughout the build, helping clients with the staged drawdowns and liaising with the lender as the project progresses.
 
Self-build mortgage rates can be higher than those available on a standard residential mortgage, but once the property is finished, clients will often have the opportunity to review their mortgage and move onto a more conventional residential product.
 
So, if you’re considering building your own home, it pays to look at the finance before you commit to the plot.
 
Key Mortgage Advice can help you understand how much you may be able to borrow, how the stage payments work and which lenders may consider your project.
 
Your home may be repossessed if you do not keep up repayments on your mortgage.

Sharon Duckworth
Director – Key Mortgage Advice
Tel: 01772 620000
sharon@keymortgageadvice.co.uk
keymortgageadvice.co.uk