Self-build mortgages

How does a self-build mortgage work and how do you apply for one?

WHAT IS A SELF-BUILD MORTGAGE? Self-build mortgages behave in a different way to traditional mortgages, releasing funds in stages that create the cash flow needed for building a home, paying for materials and paying your contractors. Being able to borrow on a house before it is completed is what makes self-build a more viable option. However, there are some limitations that come with this type of mortgage. They’re less widely available, which means they may be less competitive, and depending on the type of self-build mortgage you choose, they may not offer the best rates. HOW MUCH CAN I BORROW? The amount you can borrow will depend on your unique financial circumstances, including your income and outgoings (and any outstanding debts). Banks and building societies apply an affordability calculation to assess your borrowing…

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Homebuilding & Renovating (Digital) - 1 Issue, June 2022

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