The main difference between a self-build mortgage and a house purchase mortgage is that with a self-build mortgage, money is released in stages as the build progresses rather than as a single amount.
Some self-build lenders will lend to purchase the land: typically 75% of the price paid or current value, whichever is the lower sum. After this, the money for the build will be released in a series of stages. These stages can be fixed or flexible depending on the lender but usually there are five.
During a self-build you can normally borrow around 75% of the value of the dwelling as the work progresses, depending on the chosen self-build mortgage.
There are two key methods through which the money can be released from the self build mortgage during construction - at the end of each stage (known as arrears stage payments) or at the start of each stage (known as advance stage payments).
Contrary to popular belief, there are many companies that can lend to the self-builder, but how do you know you are getting the best deal? An independent mortgage advisor can provide vital Self Build Mortgage advice to help you find the best Self Build financing.
Simply complete the self build mortgage advice form below and Home.co.uk will put you in touch with an appropriate independent financial advisor, from our extensive panel of specialist mortgage brokers, who can find you the very best self build mortgage deals.
There's no obligation and in most cases no arrangement fee, just plain good mortgage advice. For efficiency initial contact with your mortgage advisor will be made by telephone and email then, should you prefer, a face-to-face visit can be arranged - whichever suits you best!
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