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Self-Build Mortgages
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.
| Lender | LTV Land | LTV End Value | Interest Rate | 1st Stage Payment |
|---|---|---|---|---|
| Bath BS | 95% | 80% | 4.74% | DPP & Building Regs |
| Darlington BS | 80% | 80% | 5.49% | DPP & Building Regs |
| Furness BS | 80% | 80% | 4.70% | DPP & Building Regs |
| Hanley Economic BS | 85% | 80% | 5.24% | DPP & Building Regs |
| Mansfield BS | 85% | 85% | 5.44% | DPP & Building Regs |
| Melton Mowbray BS | 85% | 75% | 5.24% | DPP & Building Regs |
| Penrith BS | 85% | 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).
| Lender | LTV Land | LTV End Value | Interest Rate | 1st Stage Payment |
|---|---|---|---|---|
| Buckinghamshire BS | 85% | 85% | 4.84% | Foundations |
| Chorley BS | 85% | 80% | 4.49% | Foundations |
| Darlington BS | 80% | 80% | 4.99% | Foundations |
| Dudley BS | 50% | 75% | 5.49% | Foundations |
| Furness BS | 80% | 80% | 4.24% | Foundations |
| Hanley Economic BS | 85% | 80% | 4.49% | Foundations |
| Holmesdale BS | 80% | 80% | 4.99% | Foundations |
| Ipswich BS | 75% | 80% | 3.99% | Foundations |
| Loughborough BS | 80% | 80% | 4.14% | Foundations |
| Mansfield BS | 80% | 80% | 4.99% | Foundations |
| Newcastle BS | 80% | 80% | 4.99% | Foundations |
| Nottingham BS | 75% | 80% | 4.39% | Foundations |
| Penrith BS | 85% | 75% | 5.50% | Foundations |
| Stafford Railway BS | 85% | 75% | 4.25% | Foundations |
| Tipton & Coseley BS | 85% | 75% | 4.24% | Foundations |
Table 3: Arrears Stage Payment Mortgages (Non BuildStore Exclusives)
| Lender | LTV Land | LTV End Value | Interest Rate | 1st Stage Payment |
|---|---|---|---|---|
| Cumberland BS | 75% | 75% | Call | Flexible |
| Ecology BS | 80% | 80% | 4.65% | Flexible |
| Halifax | 75% | 75% | 5.64% | Foundations |
| Hinckley & Rugby BS | n/a | 75% | 5.64% | Footings |
| Newbury BS | 66% | 75% | 4.70% | Foundations |
| Progressive BS | n/a | 75% | 4.25% | Wall Plate |
| Scottish BS | 80% | 80% | 5.99% | Foundations |
| Vernon BS | 75% | 80% | Call | Wall Plate |