Self Build Mortgages

With our Self-build mortgages, you can apply to borrow up to 95% of the final value of the property or 95% of the total costs of the project – including purchase of land/property – whichever is lower. And to keep your cash flowing, you can opt for stage payments.

When working out your budget, we also normally suggest you build a 10% contingency into your costings. This usually avoids any re-negotiations at a later stage when the project is up and running.

Our Self-build and Renovating mortgages have variable rate loans. So you can take advantage of low interest rates, although your repayments could also increase if interest rates rise.

How it works

Our Self-build mortgage works like a normal mortgage, except that the money is paid in stages as work on your property progresses. Payments are normally made at the following key stages:

When conveyancing is carried out in respect of the land or property.
When foundations are in place with mains services connected, and if applicable, kit erected.
When the property is wind and watertight.
When the property is complete and ready for occupation.
We will need to send valuers to inspect and pass the property at each of these stages before a payment can be made, and the property must also be appropriately insured while construction work is being carried out.

Cover yourself

After you’ve made such a big investment, it’s essential to protect your home with suitable insurance. There are several kinds of home insurance you may need to think about, such as:

Buildings and contents insurance – provides cover for both the building of your home and your belongings against a wide range of risks such as fire, theft and storm. (We require that you take a buildings insurance policy over the property which is acceptable to us.)

Mortgage repayments insurance – protects your monthly mortgage repayments if you can’t work because of an accident, illness or unemployment.

Life assurance – repays your mortgage should you die.

Our mortgage advisers can help you work out what insurance options you should consider for your situation and tell you about the policies we offer.