Helping to make your plans a reality 

Self Build mortgage is designed for people who are currently in the process or are planning to build their own house and who require funding for their project.

Self build mortgages represent specialist lending. We have experience in working with such lenders for this type of mortgage and understand the entire self build process from start to finish. So you can rely on us to make your self build plans happen.

There are two main types of self build mortgage:

• Arrears-Based Mortgage

Offered by the majority of lenders, this type of mortgage gives you each stage payment after the stage has been completed.

• Advance Stage Payment Scheme

You’ll receive each payment before the stage is actually commenced. This type of mortgage is riskier for the lender, and as a result is usually more expensive.

These types of mortgages differ from normal residential mortgages in that payments are made at a number of separate stages, which represent logical breaks in the overall building process.

Typically these stages might be:

• Completion of the footings and foundations

• Construction of the walls

• Roof on

• Completion

We have lenders who will also give you an initial stage payment to help you to buy the land as well as releasing funds at the more usual build stages. Lenders will usually advance around 75% in total of the value of the build at each stage, with 10% typically retained at final completion pending production of a completion certificate.

Structural Warranties and Guarantees

Before lending on newly built homes banks and building societies usually require sight of a 10 year Structural Guarantee which effectively insures the owner against any damage that is caused to the property as a result of sub standard construction work.

Organisations that provide such guarantees include the National House Building Council (NHBC) and checkmate.uk.com