Self Build Mortgages
Building your own home. Finance is generally the biggest challenge that self builders face - with roughly two out of three self builders needing a mortgage to see their project through. While many lenders claim to offer self build finance, closer inspection of their products illustrates their lack of knowledge of self build issues. With a finished property, the lender knows exactly what they are getting. With self build, there is an element of uncertainty, which causes many mortgage lenders to act cautiously and restrict the nature of borrowing.
The main difference between a self build mortgage and a house purchase mortgage is that self build funding is released in stages as the build progresses, rather than as a single amount. The table below illustrates the typical stages for a brick and block build, a timber frame and a renovation or conversion project.
The main difference between a self build mortgage and a house purchase mortgage is that self build funding is released in stages as the build progresses, rather than as a single amount. The table below illustrates the typical stages for a brick and block build, a timber frame and a renovation or conversion project.
Stage |
Brick & Block |
Timber Frame |
Renovation/Conversion |
1 |
Purchase of Land |
Purchase of Land |
Purchase of Property |
2 |
Preliminary Costs & Foundations |
Preliminary Costs & Foundations |
Preliminary Costs & Structural Overhaul |
3 |
Wall Plate Level |
Timber Frame Kit Erected |
Wind & Watertight |
4 |
Wind & Watertight |
Wind & Watertight |
Plastering & Services |
5 |
First Fix & Plumbing |
First Fix & Plumbing |
Second Fix |
6 |
Second Fix to Completion |
Second Fix to Completion |
To Completion |
Lloyd Vine has sourced two unique mortgage packages which are designed to suit the specific needs of the self builder. They are defined by when funds are released to customers during the build process (in arrears or in advance) and are tailored to suit our client's income and the stages of their project.
Traditional Mortgage
The Traditional mortgage works on a typical arrears stage payment basis. But what you'll find with our selfbuild mortgage, is that we can arrange up to 85% on both land and build costs - around 10% higher than most other facilities. These higher percentages mean you will have more money, enhanced cashflow and greater flexibility.
Accelerator Mortgage
The Accelerator mortgage works on an advance stage payment basis. Recognising that not everyone has the money required to get to the first build stage - or is able to release equity from their existing property to buy or put down a deposit on land, the Accelerator mortgage releases the funds at the beginning of each stage rather than the end. With Accelerator, it's possible to borrow up to 85% of the cost of land or a renovation property and up to 85% of the cost of the building works.
To discuss your self build, renovation or home improvement client requirements with Adrien or to arrange a decision in principle call 023 80601601. Or use any of our contacts.
Traditional Mortgage
The Traditional mortgage works on a typical arrears stage payment basis. But what you'll find with our selfbuild mortgage, is that we can arrange up to 85% on both land and build costs - around 10% higher than most other facilities. These higher percentages mean you will have more money, enhanced cashflow and greater flexibility.
Accelerator Mortgage
The Accelerator mortgage works on an advance stage payment basis. Recognising that not everyone has the money required to get to the first build stage - or is able to release equity from their existing property to buy or put down a deposit on land, the Accelerator mortgage releases the funds at the beginning of each stage rather than the end. With Accelerator, it's possible to borrow up to 85% of the cost of land or a renovation property and up to 85% of the cost of the building works.
To discuss your self build, renovation or home improvement client requirements with Adrien or to arrange a decision in principle call 023 80601601. Or use any of our contacts.