- Plan ItBack
- Design ItBack
- Build ItBack
- Homes
- ProductsBack
- CostsBack
- Self Build Cost Calculator
Estimate your project costs instantly with Build It's interactive self-build cost calculator
Calculate Now - Costs & Finance
- Contracts & Warranties
- Build It Estimating Service
Get an accurate, detailed cost breakdown of your project
Submit plans
- EventsBack
Q&As
Best self build mortgage options & valuation fees?
I'm looking to complete a self build that will cost £185,000. I own the land and it's valued at £135,000. I have £63,000 in savings.
What is the best option for this?
I'm going to remain in my current home until the build is complete then sell my home & remortgage the new build onto a low interest deal. I have a mortgage on my current home.
I'm looking at what is the safest option financially to make sure I don't run short on the stages and I can afford the monthly payments over 12-15 months expected duration.
One example was - To borrow £170,000 mortgage and use my savings for the remainder of the build. So to remortgage the land on an interest only mortgage so that i would get 75% of the land value first, = £101250, (£42500 deposit) and then I'd have £20,500 of savings remaining to take me as far as I can before i require a valuation.
Could you please advise on any options.
One Answer
Without knowing your full financial details it is difficult to say precisely but it would seem the best option for you, which you can discuss with a specialist adviser is to arrange a self build mortgage – self build mortgages are based on affordability/income/age etc but on the basis you qualify this would enable you to have a mortgage which you can drawdown in stages as the build progresses and as you need the funds. You are able to retain your existing mortgage whilst having a self build mortgage so this should work for you, but your existing mortgage would also need to be taken into account for the affordability purposes of your new mortgage. Once the build is complete you can switch the rate to one of the lender normal residential rates.