Self-Build Mortgages

Self-build mortgage table: Find the right mortgage funding for your self-build project with our guide to the best deals from leading lenders
by Build It
18th October 2017

Applying for any type of mortgage has become a complicated process, with new affordability rules to understand as well as a variety of changeable criteria to keep up with.

With a self-build or renovation project this can be even more challenging, as there is so much more to consider when arranging your mortgage finance.

For instance, where do you intend to live while your house is being built? And how will the cost of these arrangements (i.e. mortgage or rental payments) affect the amount you’re able to borrow to construct your new property?

Most lenders now take these factors into account when assessing your project profile, and therefore what level of funding you can afford to service.

This will be the case even if the costs are only short-term. So it makes sense to find out early on exactly what your borrowing options are, as different lenders will apply different rules.

Accessing suitable self-build mortgages

Thankfully, the lenders who operate via BuildStore offer tailor-made self-build and renovation mortgages that account for the extra flexibility required for this type of project.

The following tables are a guide to the various mortgage products currently available for self-builders. The information is verified monthly by BuildStore and was last updated on 27th March 2018.

Note some abbreviations used in these tables:

  • BS – building society
  • DPP – detailed planning permission
  • LTV – loan to value

Table 1: Advanced Stage Payment Mortgages

Created by BuildStore, these products pay out prior to the start of each phase of works, offering cashflow benefits for those requiring guaranteed capital.

LenderLTV LandLTV End ValueInterest Rate1st Stage Payment
Bath BS95%80%4.74%DPP & Building Regs
Darlington BS80%80%5.49%DPP & Building Regs
Furness BS80%80%4.70%DPP & Building Regs
Hanley Economic BS85%80%5.24%DPP & Building Regs
Mansfield BS85%85%5.44%DPP & Building Regs
Melton Mowbray BS85%75%5.24%DPP & Building Regs
Penrith BS85%75%5.50%DPP & Building Regs

Table 2: Arrears Stage Payment Mortgages

Arrears stage payment mortgages pay out in stages after completion of each pre-agreed phase of the works. They are therefore best suited to those with significant capital at their disposal (e.g. savings or cash from the sale of your current home).

LenderLTV LandLTV End ValueInterest Rate1st Stage Payment
Buckinghamshire BS85%85%4.84%Foundations
Chorley BS85%80%4.49%Foundations
Darlington BS80%80%4.99%Foundations
Dudley BS50%75%5.49%Foundations
Furness BS80%80%4.24%Foundations
Hanley Economic BS85%80%4.49%Foundations
Holmesdale BS80%80%4.99%Foundations
Ipswich BS75%80%3.99%Foundations
Loughborough BS80%80%4.14%Foundations
Mansfield BS80%80%4.99%Foundations
Newcastle BS80%80%4.99%Foundations
Nottingham BS75%80%4.39%Foundations
Penrith BS85%75%5.50%Foundations
Stafford Railway BS85%75%4.25%Foundations
Tipton & Coseley BS85%75%4.24%Foundations

Table 3: Arrears Stage Payment Mortgages (Non BuildStore Exclusives)

LenderLTV LandLTV End ValueInterest Rate1st Stage Payment
Cumberland BS75%75%CallFlexible
Ecology BS80%80%4.65%Flexible
Halifax75%75%5.64%Foundations
Hinckley & Rugby BSn/a75%5.64%Footings
Newbury BS66%75%4.70%Foundations
Progressive BSn/a75%4.25%Wall Plate
Scottish BS80%80%5.99%Foundations
Vernon BS75%80%CallWall Plate

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