Self-Build Mortgages

A Self-Build mortgage is designed for applicants wanting to build a new home for themselves as opposed to sell on for a profit.

It is a residential mortgage which can be used to purchase land (with planning permission) and then the lender can also fund the build process in staged payments. As the build process progresses, the property increases in value allowing further funds to be released. The advantage of staged payments is that you are only paying for the funds that you require at the time.

Once complete, many lenders will allow you to switch from a self-build product to a standard re-mortgage product. Alternatively, you could decide to re-mortgage to another lender.

As well as ending up with the exact house you want, a self-build project can be a good way to create equity.