Self-build mortgages

Photo: Roger Bamber/Alamy published in The Guardian

There are a number of lenders still in the marker for self-build mortgages, according to an article in This is Money from July 2013. Lenders include Norwich & Peterborough, Saffron Building Society, BM Solutions, Leeds Building Society, or specialist Buildstore. Deposits, rates and terms vary depending on planning permissions and the stage of the building.

According to Buildstore, the amount you can borrow to purchase the land will be 75 per cent of its current value, and for the build costs, again you can borrow around 75 per cent of the end value.

A lender will want to see detailed plans for the property, a projection of costs and planning permission details, and the whole application process can take five months on average!

Lenders usually release the money for a self-build in five to seven stages, taking a project from foundations to the finished property. They may want to inspect each stage before signing off on the next slice of money.

According to an article in The Guardian way back in 2011, the UK Government is keen to make financing self-build projects easier to obtain, and from a more competitive selection of lenders.