Because property prices seem to be soaring in some areas of the country, many people have decided to self build and therefore get a foot on the property ladder and reduce their overall costs. Building plots for sale in some areas are therefore becoming increasingly rare. However some areas of the country have seen a drop in property prices recently which has led to developers releasing land banks and enabling some plots to become available. Some people are put off by self building because they feel that they will not be able to afford the costs of the entire project but it is quite similar. The article below will hopefully explain how to get a self build mortgage.

Self Build Mortgage.
A self build mortgage is not like a mortgage you have for a ready built property. Self Build mortgages are released in stages as the property gets built and is signed off at various stages. The first initial instalment is to buy the land. It is important to clarify if the payments are going to released at the start of each phase or at the end. Most mortgage lenders lend no more than 75% of the cost of the land and about 60% of the build costs. A really good lender is Buildstore who tend to lend rather more. However many mortgage lenders simply take into consideration your income and your ability to repay. Many mortgage lenders offer Self Build mortgages such as Halifax through BM Solutions so it is worth asking around.

Below is the comparison of the stages of both a brick and block and a timber frame build.

Brick and Block Build.
Stage 1. Purchase of Land
Stage 2. Prelim Costs and Foundations
Stage 3. Wall Plate Level.
Stage 4. Wind and Water Tight
Stage 5. Plastered Throughout.
Stage 6. Completion.

Timber Frame Build.
Stage1. Purchase of Land
Stage 2. Prelim Costs and Foundations.
Stage 3. Timber Frame Kit Erected.
Stage 4. Wind and Water Tight.
Stage 5. Plastered Throughout.
Stage 6. Completion.

As mentioned above there are town types of Self Build Mortgages. These are called advance and arrears mortgages. Most lenders offer the arrears mortgage whereby they will lend you money when each stage has been completed and gives you the money for it. These types of mortgages are for self builders who have savings to finance the work initially or who own the plot anyway.

The Accelerator mortgage is perhaps best for those who require money to buy the land and want the money up front to pay builders. These people tend to want to keep living in their houses and not sell simply to fund the build.

These scenarios will need to be considered when you initially decide to self build.

Author's Bio: 

Miss Fiona Davies is Sales Director for
She has worked in the property and land sector for the last ten years.
All articles on the website are written uniquely by her.