Self-Build Mortgages

Introduction

Dreaming of building your own home? A self-build mortgage is designed to support your journey from foundation to finish. While it differs from a conventional residential mortgage, it’s the perfect fit for aspiring self-builders ready to take on the challenge.

What makes self-build mortgages unique?

Unlike traditional mortgages, self-build mortgages come with a few extra steps. Regular site inspections, additional admin, and the perceived higher risk mean interest rates are usually a little higher. Plus, the application process may take longer—up to five or six months isn’t unusual. But don’t worry, we’ll be with you every step of the way.

What you’ll need to get started:

To secure a self-build mortgage, lenders typically ask for:

• Detailed property plans and cost projections.
• Building regulations approval.
• At least outline planning permission.
• A professional builder or qualified project manager overseeing the build.

Deposit and lending criteria

Lenders assess your project’s market value at every stage, using factors like the property’s type, construction methods, materials, and location. They’ll also review your credit history and repayment affordability. You’ll likely need a larger deposit than with a standard mortgage. Most lenders offer up to 75% of the land’s current value and a similar amount for build costs. Some require you to own the land before applying for a mortgage.

Stage-by-stage funding

With self-build mortgages, funds are released in stages to match your build progress. Here’s how it typically works:

1. Land purchase: The first release may help you buy the land.
2. Foundations: Funds are advanced once the foundations are laid.
3. Eaves level: Next comes construction up to the eaves.
4. Watertight stage: The roof is on, and the property is weatherproof.
5. Plastering: Once the interior walls are complete, another advance is made.
6. Completion: The final payment is released when your home is ready to move in.

Ready to start building?

A self-build mortgage is your stepping stone to the home you’ve always imagined. At Maplestone, we’re here to simplify the process and help you build with confidence.

Get in touch today to discuss your plans and take the first step toward making your dream home a reality.