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Self build mortgage
Building your own home has become increasingly popular in
recent years with soaring property prices making it harder than
ever to get ahead in the property market.
 A self-build mortgage is exactly what it says, a home loan
you take out to finance building your own house. When you take out
a self-build loan the money is released in installments, with an
initial loan to buy the land.
Payments are then made at different stages of building the
property. Make sure you ask whether the payments are made at the
start of each stage or the end as this could make a real
difference to the state of your finances.
How much you can borrow depends on the mortgage provider,
although as a rule most lenders will lend no more than 75% of the
cost of the land, or around 60% of build costs. One exception is
self-build specialists Buildstore, who lend up to 95% of the value
of land.
Generally speaking, because these are such niche mortgages,
lenders tend to charge higher rates than normal. Apart from the
usual credit checks, some lenders will refuse to give you a
mortgage if you are planning to actually build the house yourself,
rather than having it professionally designed and built for you. |
For more information or to discuss your particular
requirement, click here to contact us. |
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