Improving Self Build Mortgage Awareness Key to Help Self Builders, Building Society Warns

Self build mortgage awareness is low
(Image credit: Getty Images)

More than half (52%) of potential self builders are unaware that specialist self build mortgages are available to help fund their projects, new research reveals.

Ipswich Building Society conducted a survey of 2,000 people on their plans for the future, as well as the challenges and considerations that potential self builders face. 

The positive news is that 35% of people in the UK are considering a self build project at some point in the future, but financing is a significant concern.

Lack of Awareness of Self Build Mortgages

Two in five (40%) respondents said that acquiring funding would be the one of the most difficult aspects of a self build project. The research also highlighted a lack of awareness around the availability of self build mortgages, which are designed specifically with self builders in mind. With a self build mortgage, funds are released at key stages of the build, rather than a lump sum upon completion. 

Charlotte Grimshaw, head of mortgage sales at Ipswich Building Society, said: “As an industry we all need to do more to ingrain self build as a manageable and achievable option for homeowners.

“Fortunately or unfortunately, the idea of self build is very much linked to programmes like Grand Designs, which on the one hand is a superb source of inspiration, however self build projects do not have to be of the scale or cost that we’re accustomed to viewing on television. They can be a really viable option for people with a vision and creativity who would like to design their own home within a reasonable budget too.”

Challenges and Motivations for Self Builders

The survey also shed light on the challenges and motivations facing self builders, as well as what they regard to be the most important considerations on a project.

After financing, finding a builder (20%) and finding a plot (19%) were regarded as the biggest barriers to building a home. Sourcing materials and time management were also concerns.

Having complete control over the design of the property (51%) was the biggest motivation to self build, followed by environmental factors (28%) and financial reasons (17%).

Location was identified as the most important consideration to make when planning a project (40%), followed by price (17%). 

(MORE: How to choose your self build route)

Jack Woodfield
News Editor

Jack has worked in journalism for 11 years and is the News Editor for Homebuilding & Renovating, a role he has had since 2019. He strives to break the most relevant and beneficial stories for self builders, extenders and renovators, including the latest news on the construction materials shortage and hydrogen heating. In 2021 he appeared on BBC's The World at One to discuss the government's planning reforms. 

He enjoys testing new tools and gadgets, and having bought his first home in 2013, he has renovated every room and recently finished a garden renovation.