What is a self-build mortgage?

A self-build mortgage helps fund the construction of your own home. Depending on the lender and your circumstances, it may also help finance the purchase of the land.

Unlike a standard house purchase, the money is usually released in stages as your build progresses. This means understanding when funding becomes available is just as important as knowing how much you can borrow.

How does the funding work?

Self-build mortgages generally release funds in one of two ways:

After a stage is completed

You fund the work initially, and the lender releases money once that stage meets its requirements. You’ll need enough accessible funds to cover the work in between releases.

Before a stage begins

Some mortgages provide funds ahead of each agreed stage, helping you pay for upcoming work and materials.

The options available will depend on your project, finances and the lender’s criteria. I’ll help you understand how the funding fits your build budget.

What will lenders look at?

Alongside your income, outgoings and credit history, lenders may want to understand:

  • The plot and whether you already own it.
  • Planning permission and building plans.
  • Your construction method and who will carry out the work.
  • Detailed costs and an estimated build schedule.
  • Your deposit, available funds and contingency budget.
  • Where you’ll live and your ongoing housing costs during the build.
  • The warranty or professional certification arrangements.

Requirements vary between lenders, so it helps to discuss the mortgage early.

How I can help

You don’t need to arrive knowing which lender to approach or how stage payments work.

I’ll take time to understand your plans, explain the available mortgage routes and help you prepare for the application. We’ll look at affordability, the funds you’ll need and how the lender’s requirements fit your project.

You’ll have a clear point of contact to help with the mortgage process while you focus on bringing your home to life.

Your questions answered

Do I need to own the land already?+

Not necessarily. Some lenders can consider funding towards the plot purchase as part of the overall self-build mortgage. Others have different requirements.

How much deposit will I need?+

There isn’t one figure that applies to every project. It depends on the lender, the land, construction costs and the expected value of the finished home. If you already own the plot, its equity may help, subject to the lender’s assessment.

Do I have to build the house myself?+

No. Self-build can involve appointing builders and other professionals to carry out the work. The lender will need to be comfortable with how the project is managed.

Can I discuss my options before finding a plot?+

Yes. An early conversation can help you understand your potential budget and the information you’ll need as your plans develop.

What happens when the house is finished?+

We can review your mortgage options once the build is complete. Depending on your mortgage terms and circumstances, this might involve staying with your lender or looking at a standard residential mortgage. Fees, early repayment charges and lending criteria will need to be considered.

All mortgages are subject to affordability, status, lender criteria and assessment of the proposed project.

Your home may be repossessed if you do not keep up repayments on your mortgage.