Embarking on building your dream home presents the ideal chance to personalize every aspect. Unlike purchasing an existing property, a self-build project empowers you to craft a home precisely to your specifications. For financing this endeavor, a dedicated mortgage type — the self-build mortgage — becomes essential.
With the rising popularity of self-build projects, there's a corresponding increase in self-build mortgages offered by many lenders, extending loans for these projects up to £1 million. For those seeking higher funding beyond this threshold, private banks provide enhanced flexibility, considering both financial circumstances and project requirements.
At Dickson Mortgages, our firm relationships with lenders specializing in self-build mortgages allow us to secure tailored deals to meet your specific needs. We guide you through the various types of self-build mortgages, funding stages, eligibility criteria, considerations, and the unique advantages they offer.
To explore your mortgage options and secure a self build mortgage, contact Dickson Mortgages at 07360 198 995.
What defines a self-build mortgage?
A self-build mortgage is a specialized loan tailored to finance property construction. Unlike traditional mortgages, funds are released gradually as construction progresses.
Who qualifies for a self-build mortgage?
Individuals planning to construct their own home or oversee a building project are typically eligible. Lenders assess factors like income, credit history, and project feasibility.
How do self-build mortgages differ from traditional mortgages?
Self-build mortgages vary as funds are disbursed incrementally instead of in a lump sum. Initial amounts cover land purchase, followed by staged payments for construction.
What types of self-build mortgages exist?
Main types include arrears stage payment mortgages, releasing funds after construction stages, and advance stage payment mortgages, providing money in advance for upcoming stages.
How much can I borrow with a self-build mortgage?
Lenders usually offer loans covering a percentage of land purchase and overall build costs, often between 75-95% of the project's value.
What stages release funds in a self-build mortgage?
Stages typically involve land purchase, foundation, wall plate, wind and watertight, first fix, second fix, and completion, with funds released at each stage's completion.
Are self-build mortgages more complex than traditional ones?
Yes, they can be more intricate due to the stage payment structure and ongoing valuations needed for each construction stage.
Can a self-build mortgage cover property renovations or extensions?
Self-build mortgages cater to new constructions but may consider renovation or extension projects with significant structural work involved.
What criteria do lenders assess for self-build mortgage applications?
Lenders evaluate factors like income stability, credit history, planning permissions, cost estimates, building schedules, and builder credentials.
What are the benefits of a self-build mortgage?
Self-build mortgages offer flexibility, enabling custom-built homes and potential cost savings while ensuring properties align with personal specifications.
To explore your mortgage options and secure a self build mortgage, contact Dickson Mortgages at 07360 198 995.
Telephone: 07360 198 995
Email: info@dicksonmortgage.co.uk
7 Mare Street, Hackney, London, E8 4RP
Cultivating mortgage solutions tailored to your property aspirations, residential or commercial, in the heart of vibrant Hackney, London.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU RE-MORTGAGE.
Dickson Mortgages is an Introducing Broker and operates independently, not regulated by the Financial Conduct Authority or the Solicitors Regulation Authority.
Dickson Mortgages offers execution-only products, empowering clients to make independent financial decisions tailored to their needs.
All mortgages are subject to status and lender criteria.
Most buy to let mortgages are not regulated
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A broker fee may be payable upon mortgage application as well as an administration fee. The total fee payable will depend on your circumstances. A member of our team will explain any fees applicable in your initial appointment.