A SELF-BUILD MORTGAGE IS DESIGNED TO HELP PEOPLE FINANCE THE CONSTRUCTION OF THEIR OWN HOME.

Self Build

A self-build mortgage is different from a traditional mortgage in that the money is released in stages, as the build progresses, rather than as a single amount.

1.  Obtain planning permission. This is the official approval from your local authority to build your home.

2. Get your build costs estimated. This will help you to determine how much money you need to borrow.

3. Apply for an approval in principle. This is a preliminary assessment of your creditworthiness and borrowing capacity. It will give you an idea of how much you can borrow and what your monthly repayments will be.

4. Apply for a self-build mortgage. You will need to provide your lender with detailed information about your project, including your build costs and timeline.

Once your mortgage is approved, you will be able to start drawing down funds. The money is typically released in stages, as the build progresses. You will only pay interest on the amount of money that you have drawn down. This can help to manage your cash flow during the build.

Once the build is complete, you will need to have your home valued. The lender will then release the final tranche of funds. You can then start making repayments on your mortgage.

It should be noted that self-build mortgages can be more complex than traditional mortgages. It is important to get professional advice from a mortgage adviser before applying.

Here are some of the key benefits of using a self-build mortgage:

1. You only pay interest on the amount of money that you have drawn down.
2. You have the flexibility to manage your cash flow and make payments as you need to.
3. You can build your dream home to your exact specifications.

However, there are also some risks associated with self-build mortgages, such as:

1. The cost of your build could overrun.
2. The build could take longer than expected.
3. You could have difficulty finding contractors or suppliers.
4. You could have problems with planning permission or building regulations.

It is important to carefully consider all the risks and benefits before deciding whether to use a self-build mortgage.