Self build mortgages work by the lender releasing the loan in stages as the new house is completed, up to a certain Loan to Value (LTV) of the total overall cost. Common stages are plot purchase, foundations, wall plate, weathertight, first fix and completion. Typically, stage payments for the traditional type of self build mortgage are released in arrears of work being completed, but specialist self build mortgage brokers Buildstore have developed an ‘Accelerator’ product which allows payments to be made before stages are commenced, removing the need for expensive bridging finance.

Mortgage rates for self build tend to be a little bit higher than those for conventional property mortgages. Lending criteria – how much you can borrow – will be judged on affordability in the same way as a regular mortgage. Commonly, most self builders convert their self build mortgages to regular property mortgages once the project is completed.

Find out more on how self build mortgages work here

Best Self Build Mortgage Deals

Lender Max LTV on Land Stage required for first payment Max LTV during construction Final LTV land and building Contact
Chorley & District BS* Max 85% Land Max 85% Max 80% Apply Now
Hanley Economic BS* Max 75% Land Max 75% Max 75% Apply Now
Mansfield BS* Max 80% Land Max 80% Max 80% Apply Now
BM Solutions Max 75% Land Max 75% Max 75% Visit website
Cumberland BS Max 75% Negotiable Max 75% Max 85% Visit website
Darlington BS Max 70% Land Max 70% Max 70% Visit website
Earl Shilton BS Max 50% Land Max 75% Max 75% Visit website
Ecology BS Max 80% Land Max 80% Max 80% Visit website
Halifax Not on land 1st floor level Max 80% Max 80% Visit website
Hinckley & Rugby BS Not on land Footings Max 80% Max 80% Visit website
Holmesdale BS Not on land Damp Course Max 60% Max 70% Visit website
Loughborough BS Max 75% Land Max 75% Max 75% Visit website
Melton Mowbray BS Max 85% Land Max 85% Max 75% Visit website
Newbury BS Max 66% Land Max 75% Max 75% Visit website
Newcastle BS Max 80% Land Max 80% Max 80% Visit website
Penrith BS Max 50% Land Max 75% Max 75% Visit website
Progressive BS Not on Land Footings Max 70% Max 75% Visit website
Saffron BS Max 65% Negotiable Max 75% Max 75% Visit website
Scottish BS Max 80% Land Max 80% Max 80% Visit website
Ulster Bank Not on land 1st floor level Max 80% Max 80% Visit website
Vernon BS Max 75% Land Max 75% Max 75% Visit website
Some of these banks and building societies only offer through Buildstore Financial Services Ltd Royal Bank of Scotland offer finance via bridging loan facility. The Ecology BS will lend on Ecological designed houses only. Restricted lending areas may apply. Source: All figures in the above tables are from Moneyfacts.co.uk FIGURES UPDATED ON: 29 September 2016

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