Can I get a Mortgage to build my own home? - Self Build Mortgages
When considering building your own home, you will undoubtedly need some specialist advice. At Aspire Financial Services we understand the complexity of financing such a project and can explain the best funding options in understandable terms.
Self-Build Mortgages are basically the same as residential mortgages. However, where a residential mortgage releases the funds as a single lump sum to purchase a property, a Self-Build Mortgage releases the money in stages (sometimes known as tranches) throughout the build process.
On finding a plot of land, with the correct planning permission, you can obtain a mortgage to purchase it. A lender will offer from 50% to 70% of the value of the land.
Depending on your personal circumstances, you will want to seek as much funds as you can on the land and use your own funds towards the build, reducing the number of stages required.
When the funds are released varies from lender to lender. The common stages include an initial release of funds to purchase the land, and then further releases when the property is, for example, completed to first-floor level, completed to eaves, and when the roof is made watertight. The final stage is released upon completion of the build.
It is common for the Self-Build Mortgage to be on an interest-only basis until the final release of funds, upon which it switches to a repayment mortgage.
Sound Advice
If you are considering carrying out a self-build project, this is where the best advice comes in. Call Aspire Financial Services to start the conversation and we can talk you through the pros and cons and get the funding ready for you.
Book a free 30-minute introductory call.