How Self Build Mortgages Work

The main difference between self build mortgages over a traditional mortgage is that the money is released in stages as the build moves forward, rather than as a single amount.

Lenders will release funds for clients to buy land, subject to the plot having a minimum of outline planning or permitted development rights.

Typically 25% cash deposit is needed against the cost of the whole project (purchase of land & build costs). However there are lenders that will allow a lower deposit and we can fund projects with a deposit as low as 15% of the overall cost. 

Those who already own the land and have detailed planning agreed can use the plot value to draw funds on day one of the build and potentially fund 100% of the build.

Funds can be released in advance or in arrears of each build stage. The cash flow of your clients project will dictate which lender and product best suits them.

Stages of funds being released can vary from project to project depending on the lender and the construction mechanism your clients are using. We’ll help aid with the cash flow requirements.