Building your own home can be an exciting and rewarding journey. Whether you're full of ideas for a brand-new design or looking to take on a renovation or conversion, our range of self-build mortgages could be just what you need. You'll have the freedom to shape your home around your lifestyle, with the potential added bonus of energy efficiency and the long-term savings that can bring.
Our team is experienced with the ins and outs of self-build mortgages, and we’d love to help you take the next step toward creating your perfect home.
We’ll consider a wide variety of building methods – including modern and non-standard methods of construction – giving you the freedom to choose the right approach for your project. We know not every dream home is built with bricks and mortar.
If you’re unsure whether your chosen construction method is suitable, just get in touch. We’re happy to discuss the details before you apply.
You can set aside savings to cover living costs during the build and these won't be included in our affordability assessment. That means you can stay focused on bringing your dream home to life.
It’s one of the ways we help make self-building more manageable, giving you a clearer picture of how much you can afford from the start.
During the build phase, your mortgage can be Interest-Only – keeping your monthly payments lower until the project is complete. Once the build is finished, the mortgage will revert to Capital and Interest basis for the remainder of the term. (Interest-Only for the whole mortgage term is available in certain circumstances.)
This approach gives you more breathing room financially while you're managing the many moving parts of a self-build.
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BRANCH FINDERWhat is a self-build mortgage?
A self-build mortgage is a type of home loan designed to fund the construction of a property. It’s not limited to new-builds, it can also cover partially built projects, property conversions, major renovations, and even rebuilds.
Self-build or a residential mortgage, what's the difference?
Self-build mortgages are designed for funding construction or major renovation projects, whereas residential mortgages are used to purchase properties that are already built and ready to live in. With a self-build mortgage, funds are released in stages as the build progresses, rather than as a single lump sum.
When are stage payments made?
The stages when funds are released depend on the mortgage lender. At the Vernon, we release funds after the completion of each build stage, which are typically: buying the land, laying foundations, wall plate installation, when the building is made wind and watertight, installing fixtures and plastering, and finally when the build is completed. We recommend you liaise with your project manager to ensure the funds are requested at the right intervals to maintain cash flow.
What happens to a self-build mortgage once the build is complete?
Once your self-build project is complete, you’ll need to provide your lender with three pieces of information: a Completion Certificate, Standard Buildings Insurance Schedule, and Copy of the Warranty/Architect Certificate. At this point the last stage of funds will be released for your final bills to be paid. Subject to the terms of your mortgage, you will typically be able to move onto a reduced interest rate for standard properties. At the Vernon, we offer products for borrowers in this situation.
Why should I self-build?
Self-building your home gives you full control over the design, location, and quality, often at a lower cost than buying a similar property. It lets you create a home that perfectly suits your lifestyle, with the bonus of energy efficiency, long-term savings, and a real sense of pride and achievement.
However, building your own home is no small task. It requires careful planning, time, and dedication, from securing land and planning permissions to managing budgets and coordinating contractors. Unexpected delays or costs can arise, and the process can be both physically and emotionally demanding. That said, with the right support, many find the journey incredibly rewarding. The result is a bespoke home that reflects your vision, built to your standards, and tailored to your future.
As with any financial decision you should take time to carefully consider your options.
What do I need before I get a self-build mortgage?
Before applying for a self-build mortgage, most lenders will expect you to have several key elements in place. This typically includes securing a suitable plot of land, obtaining planning permission, and having detailed architectural plans, along with a realistic and well-prepared cost estimate. If you don’t already own the land, you’ll also need a deposit alongside additional funds set aside to cover early expenses and any unforeseen costs.
Do you pay stamp duty on a self-build?
Stamp duty is only payable on the cost of the land itself, not on the value of the property once it’s been built. Under current rules in England and Northern Ireland, you’ll only need to pay stamp duty if the purchase price of the land exceeds £125,000.
