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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 in October 2019.
Note some abbreviations used in these tables:
- BS – building society
- DPP – detailed planning permission
- LTV – loan to value
Table 1: Advanced Stage Payment Mortgages (BuildStore exclusive)
Created by and exclusive to BuildStore, these mortgages provide guaranteed stage payments based on your costs before each phase of the build. This offers certainty in your budget and peace of mind that you can plan for and pay your bills on time..
| Lender | Mortgage Type | LTV Land | LTV End Value | Interest Rate | 1st Stage Payment |
|---|---|---|---|---|---|
| Bath BS | Self & Custom | 95% | 80% | 4.44% | DPP & Building Regs |
| Buckinghamshire | Self Build | 80% | 80% | 4.99% | DPP & Building Regs |
| Darlington BS | Self & Custom | 85% | 70% | 4.84% | DPP & Building Regs |
| Furness BS | Self & Custom | 80% | 80% | 4.15% | DPP & Building Regs |
| Hanley Economic BS | Self & Custom | 85% | 60% | 5.04% | DPP & Building Regs |
| Mansfield BS | Self & Custom | 85% | 80% | 4.99% | DPP & Building Regs |
| Newcastle Building Society | Self & Custom | 85% | 80% | 5.29% | DPP & Building Regs |
| Tipton & Cosley Building Society | Self & Custom | 85% | 75% | 4.99% | DPP & Building Regs |
| Vernon | Self & Custom | 85% | 80% | 5.50% | DPP & Building Regs |
Table 2: Arrears Stage Payment Mortgages (BuildStore exclusive)
These mortages release funds after each stage of building works is completed. To trigger the payments, a valuation must take place that shows an uplift in value. BuildStore’s exclusive mortgages can offer increased borrowing of up to 85% of your costs.
| Lender | Mortgage Type | LTV Land | LTV End Value | Interest Rate | 1st Stage Payment |
|---|---|---|---|---|---|
| Buckinghamshire BS | Self Build | 85% | 85% | 4.84% | Foundations |
| Chorley BS | Self & Custom | 85% | 80% | 4.64% | Foundations |
| Darlington BS | Self & Custom | 85% | 70% | 4.64% | Foundations |
| Furness BS | Self & Custom | 80% | 80% | 3.99% | Foundations |
| Hanley Economic BS | Self & Custom | 85% | 80% | 4.74% | Foundations |
| Hinckley & Rugby BS | Self & Custom | 85% | 75% | 4.99% | Foundations |
| Ipswich BS | Self & Custom | 80% | 80% | 3.99% | Foundations |
| Loughborough BS | Self & Custom | 80% | 80% | 4.39% | Foundations |
| Mansfield BS | Self & Custom | 80% | 80% | 4.49% | Foundations |
| Newcastle BS | Self & Custom | 85% | 85% | 4.99% | Foundations |
| Nottingham BS | Self Build | 80% | 80% | 3.99% | Foundations |
| Stafford Railway BS | Self Build | 85% | 75% | 4.27% | Foundations |
| Tipton & Coseley BS | Self & Custom | 85% | 75% | 4.49% | Foundations |
| Vernon | Self & Custom | 85% | 80% | 4.74% | Foundations |
| Virgin Money | Custom Build | 85% | 80% | 5.29% | Foundations |
| West Bromwich BS | Self & Custom | 85% | 80% | 4.29% | Foundations |
Table 3: Arrears Stage Payment Mortgages (Non BuildStore Exclusives)
| Lender | Mortgage Type | LTV Land | LTV End Value | Interest Rate | 1st Stage Payment |
|---|---|---|---|---|---|
| Beverley BS | Self Build | n/a | 80% | 4.99% | Wall Plate |
| Cumberland BS | Self Build | 75% | 85% | Call | Flexible |
| Earl Shilton BS | Self Build | 50% | 75% | 4.99% | Flexible |
| Ecology BS | Self Build | 80% | 80% | 4.65% | Flexible |
| Melton Mowbray BS | Self Build | 75% | 50% | 3.49% | Foundations |
| Newbury BS | Self Build | 66% | 75% | 4.45% | Foundations |
| Penrith BS | Self Build | 75% | 75% | 4.99% | Foundations |
| Saffron BS | Self & Custom | 65% | 75% | 3.99% | Flexible |
| Scottish BS | Self Build | 60% | 80% | 5.89% | Foundations |
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