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 which is where Blue-print can assist, legal considerations and obtaining permissions. While the process may seem daunting, getting the right mortgage and legal advice will make the process far easier.
As you would expect, 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. To make things slightly more complicated, your lender may want to pay after each construction stage is successfully completed. Most borrowers would prefer payment in advance, as it puts less financial pressure on them, but not all lenders will do this. It’s another aspect of planning you will need to consider.
Lenders to see self build lending as slightly 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. We cannot recommend the advantage of a contingency budget of around 10% to cover unforeseen expenditure.