26 Lowther Street, Carlisle, CA3 8DA
Self Build mortgages are specifically designed for anyone who wants to build their own property. With their knowledge and expertise, our talented team of mortgage advisers can help you navigate the complexities of this type of mortgage and find the right option for your project.
If you’re considering building your own home, a consultation with a self build mortgage adviser is recommended. Our knowledge and experience are invaluable in ensuring a smooth and successful self build journey, and we can help you finance your dream of creating a home designed and built especially for you.
With more than 100 years of experience between them, our mortgage consultants will guide you through the complexities of this type of mortgage including assessing your eligibility, explaining the borrowing criteria to you and finding the right lender for your specific needs. We will help you make informed decisions and advise you in finding the right mortgage deal for you. Because we understand the unique challenges and requirements of self build projects, we can also liaise with your architect, project manager and/or contractors to help you navigate the self build process.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Take a look at the frequently asked questions we receive from our valued clients and find the information you’re looking for.
Self build mortgages work a bit differently to your standard residential mortgage. Funds are provided at key stages as your home develops. For example you may use the mortgage to first finance the purchase of land, then materials, then the first fix, the second fix, and contractor payments along the way.
In the main, there are 2 types of self build mortgages:
Whilst it might feel daunting to receive the money in instalments… this set up means that if you can’t fund the build using savings – your self build home can still be a reality.
It’s worth noting though, that this type of mortgage is more complex and not as easy to find as your standard residential mortgage. Therefore, there is less competition and self build mortgages may come with higher interest rates.
Most of the High Street lenders do not offer self build mortgages so using a broker is a wise idea. Your broker will have expert industry knowledge, knowing which lenders provide this type of self build finance. They can also do the leg work for you when it comes to the application. A self build mortgage broker can support you through, what at times, can be a very complicated process. Here are some things to consider;
The documentation required to get a self build mortgage is the same as a standard residential mortgage. However, additional supporting documentation will be required:
As part of the application process an initial valuation will be done to determine the current value of the property and estimate its future value. You'll need to cover the cost of this valuation. Then, interim and final valuations will be requested and conducted by a qualified RICS valuer. These valuation reports will be provided to the lender to show the increase in value during the building process. This evidence is necessary before the lender releases funds at any interim and or final stages of the construction.
There are mortgages out there just for land and some lenders specialise in this. If you are wanting a mortgage just for land, it is likely that you will need a large deposit. For this type of mortgage the lender often requires 50% of the value of the land or more.
Most lenders would also require some form of planning permission in order to assess whether or not they will approve an application for a mortgage for just land. However, there may be occasions where it is possible without planning permission. For example, if detailed plans, pre permission, are available.
At Stan Sherlock Associates, arranging a self build mortgage is not a one-off transaction. Self build mortgages are complicated and require an expert’s oversight. Our advisers guide you through the mortgage application process and are on hand to assist right the way through to the completion of the build. We aim to build long term relationships with our clients and provide you with an advice service over the lifetime of your mortgage or mortgages which ensures you always have the right deal for your situation.
Our clients come from across the UK. Many of our mortgage advice services can be provided by phone and email but our mortgage advisers are always happy to meet you face to face.
Disclaimer: The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable or available in any other country which may have access to it.
Registered Address: 26 Lowther Street, Carlisle, Cumbria, CA3 8DA
Company Number: 05719965
Stan Sherlock Associates Limited is an appointed representative of the Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the financial conduct authority.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Some buy to let mortgages are not regulated by the financial conduct authority.
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