Self-Build Mortgages Explained

Steps to a successful self-build

If you’re looking for more information about self-build mortgages and how they work, this guide breaks things down in a more understandable way. It’ll give you a clearer picture of what’s involved in turning your dream home into a reality.

 

Starting your self-build...

Get advice

  • First, you need to speak to a Mortgage Adviser. They will talk you through the self-build mortgage process in more detail, recommend a suitable product based on your individual circumstances.

Apply

  • After receiving the application, our underwriters will assess your circumstances. They will ensure the project is suitable for us to lend you money.

Your mortgage

  • If all the costings and information is approved – your mortgage offer will be issued! There will be contract paperwork from us that you’ll need to read, check everything is correct and then sign.

Starting the build

  • Once you have received your mortgage offer you are ready to start building your dream home! Self-building your home gives you full control over the design, location, and quality of your home.

What do you need before applying?

When applying for a self-build mortgage, it’s important that your credit report is in good condition, and the income and outgoings shown on your bank statements are healthy, with no signs of overspending.

Other information that you will need is similar to applying for a regular mortgage. You will also need to provide a copy of the plans and elevations, planning permission and detailed costings. We will also ask to see a copy of Building Regulation approval, the schedule of works (including dates), details of the structural warranty, and evidence of funds that you have available.

Stages of a self-build project

We release the payments in arrears on completion of the following build stages. Don't worry about the word 'arrears', it just means that you'll receive the funds once each stage is completed:

Stage One: Land

If you haven't already, this is the stage where you would purchase your land. 

Stage Two: Foundations

Foundations are where it all begins. This includes drainage, brickwork and floor slabs that will begin to create the outline of your dream home.

Stage Three: Wall Plate

Next, your walls and frames are created. This is everything before your roof is placed on top! You will see your first floor start to take shape and load bearing walls will then be placed.

Stage Four: Wind and Watertight

You will begin to see your roof installed along with your doors and windows. Your house  should be watertight quite quickly after this point!

Stage Five: First Fix and Plastering

Internal walls will be built and electrical works begin as well as piping for your water, staircases and door frames. All your electrics and plumbing will be placed and then plastered over. 

Stage Six: Second Fix to Completion

The second fix means your rooms will be installed. You can then start to decorate your home. This will then see you through to completion, helping you get ready so you can move in!

Mortgages are secured on your home. You could lose your home if you do not keep up repayments on your mortgage.