There are two types of stage payment mortgage available. These are defined by when funds are released to you during the build process (in arrears or in advance). Here’s how they work:

Traditional arrears stage payments
For self build projects, funds are released to buy the plot, typically up to 75% of the purchase price, and then the money for the build phase is released in stages after a valuation has taken place, corresponding with what point you’re at with your project. This means that you will be responsible for funding the early parts of the project, including the deposit on the land. This type of mortgage is best suited to those who already own a plot, or someone who has sold their home and has lots of capital to invest in the build.

Advance stage payments
Recognising that not everyone has the cash to complete the early stages of their build nor the ability to release equity from their existing property to buy or put down a deposit for land, BuildStore created the advance stage payment mortgage, known as the Accelerator. It releases funds at the beginning of each build stage and can be run alongside your existing mortgage. The positive cash flow offered by Accelerator makes the building process easier and quicker, as the labour and materials can easily be paid for as and when needed.
Regardless of what product you choose, your lender will ask for a lot of information about your project, such as the architect’s plans and an insurance policy. They will usually inspect your progress at the end of each stage before releasing the next tranche of funds. At the end of the build, they will ask for a structural guarantee in the form of an approved warranty or certification from a relevant qualified architect confirming the work has been completed to a satisfactory level.