SPECIALIZATION
Self Build
Specialist mortgages for self-build projects, where borrowers build their own home. These mortgages provide funding in stages as the build progresses and may include land purchase and construction costs.
What is Self Build?
Understanding the fundamentals and purpose of self build financing
Specialist mortgages for self-build projects, where borrowers build their own home. These mortgages provide funding in stages as the build progresses and may include land purchase and construction costs.
Self Build mortgages are designed for specific property types and investment strategies, offering tailored terms and conditions that differ from standard residential mortgages.
Before pursuing self build financing, it's crucial to understand the requirements and process involved. Specialist brokers can guide you through every step of the application process.
Key Features
Essential characteristics that make self build mortgages unique
Competitive Rates
Access market-leading rates with flexible terms to suit your self build strategy.
Fast Funding
Quick decisions and rapid funding for time-sensitive opportunities.
Flexible Terms
Tailored funding solutions for various development types and scales.
Expert Support
Dedicated specialists to guide you through the entire process.
High LTV Options
Borrow up to 75% of the project value with competitive options.
No Early Repayment
No penalties for early repayment, giving you flexibility in your exit strategy.
Eligibility Requirements
Key criteria you need to meet to qualify for self build financing
Property Requirements
- Suitable property type for self build
- Valid planning permission (if required)
- Clear investment strategy
- Good location and market conditions
Borrower Requirements
- Relevant experience preferred
- Good credit history
- Adequate deposit (varies by type)
- Strong financial position
Application Process
Step-by-step guide to securing your self build mortgage
1
Free Consultation
45 minDiscuss project and funding requirements
2
Application & Documentation
2-3 daysSubmit forms and financial documents
3
Property Valuation
1-2 weeksProperty appraisal and development assessment
4
Lender Assessment
2-4 weeksProject feasibility and borrower review
5
Legal & Monitoring
2-3 weeksLoan agreement and monitoring setup
6
Project Monitoring
OngoingStaged fund releases and oversight
Total: 4-8 weeks
Current Self Build Rates
Latest interest rates and pricing for self build mortgages
Interest Rates
Typical range for self build mortgages
4.5% - 6.5%
4.0% - 7.5%
Deposit Required
Minimum deposit for self build financing
30% - 35%
Min: 25%
Processing Time
From application to completion
4-8 weeks
Average timeline
Rates vary by lender and circumstances. Contact specialist brokers for personalized quotes.
Key Features of Self Build Mortgages
What sets self build mortgages apart from standard options
Staged funding releases as build progresses
Specialist lenders with self-build expertise
Flexible terms for various build methods
Professional project monitoring and support
Exit strategy flexibility
Eligibility Requirements
Detailed criteria for qualifying for self build financing
Borrower Requirements
- Strong financial position and credit history
- Adequate deposit and working capital
- Self-build experience or professional team
- Clear project feasibility and timeline
- Professional project management
Property Requirements
- Suitable land with planning permission
- Good location and market conditions
- Realistic project timeline and budget
- Professional build team in place
- Adequate insurance coverage
Benefits & Considerations
Weighing the advantages and important factors for self build mortgages
Benefits
- Build your dream home to your specifications
- Potential for significant cost savings
- Staged funding reduces risk for lenders
- Professional support throughout the build
- Flexible terms for different build methods
Important Considerations
- Higher interest rates than standard mortgages
- Staged funding requires project milestones
- Professional monitoring and reporting required
- Longer processing times due to complexity
- Exit strategy must be clearly defined
Fees Guide
Understanding the costs and fees associated with self build mortgages
Arrangement Fee
Lender setup fee for self build finance
1.5% - 2.5%
of loan amount
Valuation Fee
Professional property and development assessment
£500 - £2,000
one-time cost
Legal Fees
Loan documentation and property transfer
£1,000 - £3,000
legal costs
Monitoring Fee
Fee for monitoring the progress of development work and releasing funds in stages.
£300 - £800
ongoing
Broker Fee
Fee for arranging the development finance. Only charged upon successful completion.
0.5% - 1.5%
on completion
Important Notice
Fees can vary significantly between lenders and depend on your specific circumstances. Brokers will provide you with a detailed breakdown of all costs before you proceed.
Top Self Build Brokers
Verified specialist brokers with expertise in self build financing
Frequently Asked Questions
Common questions and answers about self build mortgages
What types of self-build projects can I get finance for?▼
A:Self-build finance is available for traditional builds, kit homes, conversions, and renovations. The specific criteria and terms vary depending on the build method, project size, and complexity.
How does staged funding work for self-build?▼
A:Staged funding means the lender releases funds in stages as the build progresses, typically based on completion milestones like foundation, walls, roof, and completion. This reduces risk for the lender and ensures the project stays on track.
What deposit do I need for self-build finance?▼
A:Self-build finance typically requires deposits of 30-35% of the total project cost, including land purchase and construction costs. The exact amount depends on the project type, your experience, and the lender's criteria.
Do I need planning permission before applying?▼
A:Yes, most self-build lenders require full planning permission before approving the loan. Some may consider outline planning permission, but full permission is generally required for the best terms.
Can I get self-build finance for a kit home?▼
A:Yes, self-build finance is available for kit homes, traditional builds, and other construction methods. The specific criteria and terms may vary depending on the build method and lender.
What experience do I need for self-build finance?▼
A:Most lenders prefer borrowers with previous self-build experience, though some may consider applications from those with relevant construction backgrounds and strong professional teams.
How long does the self-build process take?▼
A:Self-build projects typically take 6-18 months, depending on the build method and complexity. The mortgage term will be based on the expected completion date and your ability to service the debt.
Can I get self-build finance for a property I plan to live in?▼
A:Yes, self-build finance is available for properties you plan to live in, though you'll need to demonstrate your intention to reside in the property and may need to provide evidence of your plans.
What happens if the build goes over budget?▼
A:If the build goes over budget, you may need to provide additional funds or renegotiate the loan terms. It's important to have contingency funds and realistic budget planning to avoid complications.
Can I get self-build finance with adverse credit?▼
A:Some specialist lenders may consider self-build finance for borrowers with minor credit issues, though the criteria may be stricter. You'll typically need a larger deposit and may face higher rates.
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