self build mortgages
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of the products and services described in this web site.
self-build mortgages involve a property that the construction of which is controlled by the borrower, not a finished unit. Self build mortgages will normally be advanced in stage payments and are subject to strict limits on loan to value. A qualified architect will need to be involved and lenders will frequently look for the builder to have NHBC or Foundation 15 guarantees.
Because building your own home has become so popular, due to the fact that you get more home for your money, there is now a large number of banks and building societies willing to offer self build mortgages to people who want to build their own home. What tends to happen is the lenders will give you a loan for two different aspects of the purchase, firstly they will lend you anything up to eighty percent of the value of the land that you wish to purchase for your home and then they will lend you up to ninety five percent of the price of the building materials needed for the property. Any money that needs to be paid for construction work that has been or will be undertaken is usually paid for in arrears.
With self build mortgages the lender will give you the money in five different stages so therefore you wont have any worries regarding your cashflow, so you must ensure that you do your sums well and make sure any quotes that you have are not going to increase as you will not have enough money for your project. So ensure you get the correct amount of building materials because if you end up needing extra materials at an advanced stage of the project and then find yourself with no more money coming from your lender you will then have an unfinished property, the wife will not be happy. With self nuild mortgages and the actual building of the property you should be fully aware of your limitations are, there is absolutely no point at all in attempting something that you are not completely au fait with. Ensure that you visit your solicitor and ask him to draw up a couple of contracts for yourself and anyone who is involved in the actual building of the property.
There is of course downfalls with having self build mortgages and the main one which is an absolute nightmare is that no matter what happens to the property, whether it falls to bits during construction or is not completed you are still going to have to pay the lenders their money back. so it is a priority that you have a reputable builder and this will at least stop you from being the next people on the tv programme "builders from hell", so be sensible about it, if you need more information on these kinds of mortgages then please do not hesitate in contacting us.