Secure your self-build mortgage

A self-build mortgage is a tailored loan for those constructing their own homes, releasing funds in stages as the project progresses. This phased approach allows you to only pay interest on funds when needed. Use our self build mortgage calculator to get an estimate based on your project’s needs.

Unlike traditional mortgages, self-build and custom-build mortgages release funds in phases as you complete key construction milestones, ensuring you only borrow what’s required when you need it. You can book a call with our team of experts to better understand the process and how we can support you.

Borrowing limits vary, as lenders assess your income and project costs. For an estimate based on your situation, try our self build mortgage calculator to see what you might qualify for.

Yes, it’s often possible to remain in your current home during the project, but this depends on your financial circumstances and borrowing limits.

Yes, you can but land without planning. But for the land purchase we would need to use an alternative funding method as planning permission is required for self build financing.

Yes, self build mortgages are accessible to first time buyers, providing they meet the lender’s criteria.

Yes, retirees are eligible, but lenders will review factors like income and project costs to determine eligibility. You can book a call with our team of experts to talk through your specific circumstances.

Bad credit doesn’t necessarily disqualify you from a self build mortgage. Lenders will review your credit history and assess on a case-by-case basis.

Currently, many top high street banks don’t offer self-build or custom build mortgage products. Our team can match your project to specialised lenders that support self build projects. Contact our team to find out which lenders would suit your project requirements.

If you own the land, you may not need a cash deposit. This is dependent on your self build project cost and estimated final value, but you could potentially fund the entire build with your self-build mortgage.

Self-build mortgage terms align with regular mortgages, with the term typically extending until your primary income stream stops or your project’s cash flow ends.

Self-build mortgages generally use a repayment structure, meaning your debt will be fully repaid by the term’s end, similar to a traditional mortgage.

Usually, a 25% cash deposit on the total project cost is standard, though if you already own land, the required deposit may be lower. Read more about deposits for self-builds in our self build mortgage blog.  

Budgeting  for a self build mortgage involves careful planning and considering several factors that can impact the total cost. We recommend breaking this into four parts:

1. Land cost: The price of the land you’ll build on, if you don’t already own this.

2. Build costs: Research average build costs per square meter in your area, or use our build cost calculator to get a more specific estimate based on the size and features of your home.

3. Contingency plan: Include a buffer of 10-20% in your budget, or allow for additional borrowing on your self build mortgage, as a contingency for unexpected costs that may arise during construction.

4. Lender borrowing limits: Most self build mortgages allow you to borrow up to 75% of the total project cost. Use our self build mortgage calculator to get a quote for how much you could borrow.

Applications typically take 8-12 weeks, depending on the lender’s process and requirements. Your adviser can provide a timeframe tailored to your selected lender’s process once you have the ideal lender in place.

Self-build mortgage rates can vary, often higher than conventional mortgages due to the phased release of funds. Check our up-to-date rates (further up this page) for current figures.

Traditionally, self build mortgages would be released in 5 stages, being foundation, wall plate, wind and watertight, first fix, and second fix to completion. But many lenders today allow flexible drawdowns based on your project’s timeline and inspection needs. As each self build mortgage lender has different criteria on the amount of draw downs they will allow, your adviser will ensure that the self build mortgage lender you’re paired with will allow the expected number of inspections you need on your mortgage.

Self-build mortgages can have higher interest rates due to the phased nature of payments. You can check our up-to-date rates (further up this page) to get a sense of the costs.

Alternative funding options include refinancing existing property, savings, and development loans. But if you plan to live on the land post-construction, a self build mortgage could be the most cost-effective option.  Book a call with our team of experts to talk through your options.