If it seems like an impossible dream, to build your own house that not only fulfils all your needs but is also built to the highest possible standards.
People have many reasons for choosing self-build, from specific design needs to wanting control over the process.
A growing number of people, though, want the chance to have a home with higher standards of health and energy efficiency than most commercial developers meet.
There is over 12,000 self-build completions per year in the UK.
With a self build mortgage, money is released in stages as the build progresses.
Some lenders will lend you money to purchase land - typically 75% of the purchase price or value some will lend up to 100% of the build costs.
Lenders will work on affordability and if self employed the lenders will need to see at least 1 years accounts and most usually require 2 years accounts. If employed the lenders will need to know the borrower has been employed for at least 6 months but most prefer 1year.
Budgeting is vital when putting a self build project in place because house building costs can run and run.
The funds for the build are released in stages.
These stages can be fixed or flexible, depending on the lender, but usually there are 5 or 6 stages.
There are two methods by which the money can be released during the build
The end of each stage (known as arrears stage payments)
The start of each stage (advance stage payments).
With the arrears stage payment method, money is released after a valuer has visited the site and confirmed completion of the stage. This can cause some self-builders cash flow difficulties.
The advance stage payment method works in the opposite way, with money released at the beginning of a given stage, before work starts. This method has become popular as it provides positive cash flow during the build,
making it easier to stay in your current house while the build progresses.
The stages of a build depend on whether or not you are building a Traditional (brick and block house),
Seeing yourself in your dream home, that you have built with your own hands may be easy to visualise.
However at The Self Build Mortgage Shop we know that funding that dream home can prove to be a frightening task.
The Self Build Mortgage Shop work on your behalf to secure the funds for your dream project and take the stress away from you so you can concentrate on getting on with the job of building your dream home.
As FCA regulated advisers we trawl the whole of the market to get a mortgage that suits you.
We work with clients and Lenders from all over the UK and specialise in making the process easy and straight forward Call us today to discuss your options .
Call Now 01923 254 760.
PLEASE BEAR IN MIND THE COSTS
Potential architect costs, planning submission costs, enforced amendments to plans and ultimately potential rejection of plans.
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The Self Build Mortgage Shop
Cardinal Point, Park Rd, Rickmansworth, Hertfordshire WD31RE, GB
The Self Build Mortgage Shop is the trading style of James Blair trading as James Blair & Co is an Appointed Representative of Julian Harris Financial Consultants, authorised and regulated by the Financial Conduct Authority No. 153566