Building a house is an ambition held by many, but before the first brick is laid, a great deal of planning is required.
There are several factors to be considered at each point of the house building process, including budget, self build mortgaging, legal considerations and obtaining permissions. While the process may seem daunting, getting the right mortgage and legal advice will make the process far easier.
Self build mortgages work differently from a house purchase mortgage. Rather than getting the money upfront, your lender will release it in stages to fund the construction. Your lender will pay installments after each construction stage is successfully completed to the required standard.
Lenders see self build lending as higher risk lending so will insist on larger deposits than a residential purchase. Lenders will also expect the relevant planning permissions to be in place before you approach them and to see the detailed plans.