Self Build Mortgages Finding the right house in the right location is a tall order. Perhaps this is the reason why more and more people are choosing to buy their plot of land and have the house built for them.
Self building is now so popular that many banks and building societies will lend between 25% and 80% of the land value and between 65% and 95% of the building costs. As far as we know 100% mortgages are not available. Please let us know if during your searches you find a lender who is willing to provide a 100% self build mortgage!
A self build mortgage requires that you plan very carefully to ensure that your money is released at the key milestones of your self build project. During the self build project there are two methods that mortgage providers will use to make your milestone payments. Payments are made either at the start or end of each key stage typically known as arrears stage payments and advance stage payments.
It is worth noting that arrears stage payments can cause cashflow difficulties. There are self build mortgages available that will accommodate advance payments, therefore easing your cashflow situation during the self build project.
It may be of interest to self builders to know that there are many plot search facilities available on the internet. Our searches have revealed Devon and Ireland as two of the most popular self build areas.