Discover our Self Build service

"If you want to build your own home, with everything just how you want it, the first thing you need to do is work out how to finance the build."

Self-build mortgages are a type of loan that you take out to fund your building project where you are the constructor. The main difference is that the funds are released to you in stages as parts of the build are finished, rather than as a single lump sum.

This way, the lender's risk is reduced and you can ensure that all the money will be spent according to your plans. Exactly when funds are released depends on the lender but usually, you receive the first payment when you buy land, additional payments when foundations are laid and another payment once construction reaches eaves level.

Later payments are usually made when the roof is watertight or interior walls have been plastered. The last instalment is normally paid upon completion.

  

"What's the benefit of the Self Build path?"

If you're thinking of building your own home, you should know about the potential savings you could make on stamp duty

  Unlike with other mortgages, you don't have to pay stamp duty on the cost of building work or the value of the property once it's finished. You only have to pay duty on the value of the land itself, and only then if it costs more than £125,000

  What's more interesting, self-builders often find that the finished property is worth significantly more than the cost of the land, materials and labour combined.