Have you ever considered building your own home? One that fits your exact requirements and taste?
If the answer is yes, you are among a growing number of people attracted to the flexibility and profitability of self-build homes. Over 13,000 custom and self-built homes were built in the UK in 2017, and that figure is estimated to have risen to 40,000 since then.
As opposed to a typical mortgage, in which funds are released as a single amount to purchase the property, with self-build mortgages, the funds are released in stages as the build progresses. These payments can either be made in arrears or in advance.
Arrear Stages Payments
With arrear stage payments, funds are released after each stage of the build is complete and a surveyor has made an interim valuation. The release of funds therefore relies upon an uplift in value at each stage.
Advance Stage Payments
With advanced stage payments, funds are released at the start of each stage, prior to work commencing. This improves cash flow and ensures funds are available for payments when you need them. As these types of mortgages are riskier for the lender, they tend to be more expensive.
Building your own home is a large undertaking, that requires time and dedication. However, the result is a home perfectly tailored to your needs and lifestyle.
So, how are people financing their self-build homes?
Traditionally, mortgages for self-build projects have been difficult to access. However, following the Government’s ‘Right to Build’ initiative, which sparked a rise in the number of people wanting to build their own homes, an increasing number of lenders have started to offer specialised mortgages.
If you would like to speak to one of our Advisers about financing a self-build, please give us a call on 01536 512724 or email firstname.lastname@example.org
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