Self-build Mortgages

If you have already weighed down all the pros and cons of a self-build project and have the determination to start it, congratulations! Such a courageous decision will not only give you the right to choose the location and type of property, but also is likely to translate into handsome financial gains after the project completion.

It should be noted that when it comes to self-build projects, managing through finance-related issues can be quite difficult. Traditional mortgages wouldn’t make the best option since you can only be offered money for covering the value of land, but not  the value of the property that will exist in a couple of months. Still, there are some relatively good options such as combining a traditional mortgage and separate loans or using equity release to get the funds needed for the actual build.

However, these days, people who are planning to start a self-build project turn to a variety of specialist mortgages deals designed to meet the requirements of a self-builder.

Self build mortgages (also called stage payment mortgages), have become rather popular in recent years despite the recession-tainted period.  Now you don't have to Google long to find reputable UK lenders offering this type of mortgages.

The cost of an average self-build project constitutes about £150,000. As a rule, self-build mortgage lenders will lend 75 - 95 percent of build costs. A growing number of self build mortgage providers will allow you to keep residing in your current home and you won’t have to sell up to finance the build and temporarily live in a rented property.

The distinctive feature of a self-build mortgage is that the funds are released in stages, as the build progresses. Generally speaking, currently one can choose betwee two types of self-build mortgages: mortgages that provide you with finance as soon as the relevant build stage is finished, and mortgages that give you money when the relevant build stage starts. Still, no matter which one of these mortgage types you choose, you will have to adhere to defined build stages.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.