Mortgages for Self Builders
Build the home of your dreams. We guide you through the complexities of stage-release funding so you can focus on the construction.
Funding Your Grand Design
The main difference between a self build mortgage and a standard house purchase mortgage is that funding is released in stages as the build progresses, rather than as a single lump sum.
How Does Stage Release Work?
Lenders release funds at key stages of your project (e.g., Land purchase, Foundations, Eaves
level, Roof watertight, First fix, and Completion) to minimise their risk. This ensures the
loan matches the current value of the developing property.
Arrears vs. Advance Stage Payments
Arrears: The lender releases funds after a stage is complete and valued. You
need enough cash to fund each stage upfront.
Advance: The lender releases funds before the stage starts, giving you the cash flow to pay for materials and labour immediately. We can help you secure the right option based on your initial capital.
Advance: The lender releases funds before the stage starts, giving you the cash flow to pay for materials and labour immediately. We can help you secure the right option based on your initial capital.
How Much Deposit is Required?
Self build mortgages typically require a larger deposit than standard residential purchases,
often around 25% of the land purchase price and build costs combined. However, exact
requirements vary significantly between specialist lenders.
Renovations & Conversions
The same stage-release funding principles apply if you are undertaking a major renovation or
converting a non-residential property (like a barn or commercial building) into your home.
Detailed Planning is Essential
Before you approach a lender, you need detailed planning permission, a fixed-price contract with your builder (or comprehensive cost estimates if managing it yourself), and a solid contingency fund (typically 10-20%) for unexpected costs. We'll help you compile the perfect application pack.