Unless you are in the lucky position of being able to 100% fund your project with cash, you will need to raise money. Builders usually expect to be paid monthly, so a shortfall or a badly planned payment release schedule could cause unnecessary difficulties further down the line.
We suggest your first point of call when seeking a mortgage should be the Ecology Building Society. Hebhomes has partnered with this innovative company to help offer tailored mortgages specifically for self-built and off-site manufacturing projects.
In addition to contacting the Ecology Building Society, we have also partnered with Perth based national broker, The Lending Channel . Using the services of a good, long-established broker will allow clients to gather all relevant information, putting them in a position to make an informed decision on the best way forward at an early stage, and offer them more options.
The Lending Channel can be contacted through this email address: firstname.lastname@example.org
With self-build mortgages being a fairly specialised product, only a small number of lenders offer these types of facilities. After an initial online or telephone enquiry, the broker will arrange a telephone fact find appointment, to fully assess your circumstances:
• Identify and acquire the land. The land will need full detailed planning permission before you can borrow any money against the site. You can borrow against the land to help with the acquisition, but this may severely restrict your cash flow as the project progresses.
• 80% - maximum amount you can borrow against the property at any time during the build process.
• Funds release – (usually) after critical stages of the construction is complete.
This type of self-build mortgage is only used to fund the building of a client’s main residence. Other funding options are available should the client be planning to build any type of property for investment – either for Buy to Let or for Holiday Lets. The Lending Channel can also help with this commercial finance.
Self-build Mortgage broker fees:
• £495 on full application to the lender (once full fact find and assessment has taken place)
• £1,500 due on mortgage offer
Customer Advice: Your home may be repossessed if you do not keep up repayments on your mortgage.