Self Build Mortgages

Can I still get a self build mortgage?

Tue, 03 Nov 2009 10:44:03 GMT

A number of people have been asking if it is still possible to get a self build mortgage with the recent departure of a number of high profile self build lenders from the market. The answer from self build mortgages is a resounding yes!

Despite some big names such as Nationwide leaving the self build market, we are happy to say that we still have access to a range of competitively priced mortgages for the budding self builder. Whether you are looking to build a brand new property, convert an old barn or renovate a dilapidated house, we have access to products just perfect for your needs.

Why not request a call back for free and impartial advice; and see what we can offer you.

Self build mortgages - Not just for new properties

Thu, 08 Oct 2009 12:20:42 GMT

Self build mortgages aren’t just for completely new developments on a barren building plot. Lenders are happy to fund development and renovation projects involving existing properties, such as barn conversions or renovations of an uninhabitable house.

So what counts as a self build?

Broadly speaking, lenders will lend on a self build basis where the property needs significant building or renovation work. If is just in need of refurbishment then you may be better of with a traditional residential mortgages (which we can arrange for you to). Most lenders will also consider applications where an existing dwelling is to be cleared to make room for a brand new property.

How does this help me?

By widening your search to include barns for sale, or properties in need of significant renovation you may be able to find the perfect plot more quickly or even better more cheaply. In the current climate some properties requiring major renovation work can be purchased at a significant discount and could work out cheaper to develop than a new build.

Whatever type of development plot you might find, we’re certain we can arrange the perfect self build mortgage for your requirements.

Which lenders do you use?

Thu, 10 Sep 2009 13:06:41 GMT

Self Build Mortgages will research all available lenders when providing an illustration for your self build mortgage, thereby providing a "whole of market" service. Not only do we have access to the full range of lenders, but we can also provide a number of exclusive deals that are only available through a selected number of intermediaries.

The best deals

All this means that you get access to the best self build mortgages available in the market so why not just give us a call and find out how easily you could be living in your dream home.

How much will my self build cost?

Fri, 21 Aug 2009 12:41:41 GMT

Perhaps the most important factor in the viability of your self build project and in your mortgage application is the cost of the build itself. The cost of the build can vary hugely depending on a number of factors, the most significant of which are:

The size of the property
The quality of the finish and fittings
The amount of work you do yourself

However as a guideline you can work on a figure of £120 per square foot which assumes a good quality of finish and that all work is performed by external contractors.

Remember to factor in the additional costs above the cost of the build itself, such as:

Architecture and planning
Solicitor fees
Mortgage and rent costs
Connection of utilities

If you would like to discuss build costs, or your self build mortgage, why not call us in 0800 783 672, alternatively why not complete our self-build call back form to arrange a call back at a convenient time.

The stages of a self build project

Thu, 06 Aug 2009 14:58:58 GMT

With a self-build mortgage, the mortgage lender will make staged payments throughout the build project. Lenders generally work on a six stage system for traditional construction properties. The stages are:

Purchase of the plot
Initial costs and foundations
Wall plate level
Wind and watertight
First fix and plastering
Completion

At each of the stages above the lender will normally instruct a surveyor to inspect the work to date and provide a value based upon the current build progress.

How much deposit will I need?

Tue, 04 Aug 2009 15:13:11 GMT

This depends on both the type of self-build mortgage and your income, however even in the current economic climate you can borrow up to 90% of the purchase price of the land. So with as little as a 10% deposit you could embark on your own self-build project.

If you already own your existing home then we can raise the deposit moneys on you current house until such time the new property is completed.

Why not call us to discuss all of your options with a fully qualified adviser on 0800 783 672, alternatively why not complete our self-build call back form to arrange a call back at a convenient time.

Can I buy a plot without planning permission?

Tue, 04 Aug 2009 11:23:52 GMT

Self build mortgages are not available are not available for land without planning permission and some lenders will not lend where only outline planning permission exists. Despite these restrictions we can arrange a self build mortgage on land with outline planning and provide other forms of funding to purchase land without planning permission.

We have access to a wide range of financing products to help with the purchase of a plot if a conventional self build mortgage is not available, such as:

Bridging finance
Additional borrowing against your current home
Commercial finance

Please note that if you decide to purchase land with no planning permission that you are taking a gamble insomuch as, planning consent may not be granted leaving you with a plot you cannot build on. We would normally recommend that outline planning consent is sought prior to the purchase of a plot.

If you wish to discuss your particular case with an advisor, please call us free on 0800 783 672, alternatively please complete out self build mortgage call back form.

Do I have to do the building work myself?

Tue, 04 Aug 2009 11:18:23 GMT

No the term self-build does not mean that you have to have the necessary skills to perform the building work, although you will need to find local suppliers and tradesmen to perform the build. It may be advisable to hire a project manager to oversee the build if more than one construction firm is involved.

What savings can I make on stamp duty?

Tue, 04 Aug 2009 10:19:51 GMT

One of the many benefits of a self-build project is that you will only pay stamp duty land tax (SDLT) on the purchase price of the land. Generally this is a fraction of the value of the final property and is generally be below the threshold at which stamp duty is charged (currently £175,000).