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MORTGAGES

Self-build Mortgages

Self-build mortgages are in main provided by specialist lenders due to their complexity. As this is the case there are fewer products available than with a traditional mortgage.

A traditional residential mortgage releases funds on legal completion of the sale of the property, whereby a self-build mortgage offers payment in stages across a build, which assists those who don’t have the capital to pay for the build outright to manage cashflow. It also mitigates the lender’s risk and ensures the money is spent as planned.

Funds are generally made available at the following stages:

  • Purchase of the land
  • Preliminary costs & foundations
  • Wall plate level
  • Wind & watertight
  • First fix & plastering
  • Second fix to completion

There are two types of self-build mortgage:

Arrears

The most common form of self-build mortgage. If you have a large amount of cash to start the project, then an arrears type self-build mortgage may be the best option. A self-build arrears mortgage offers payments in stages after each stage is complete. This means you spend your money and are then reimbursed.

Advance

This is for those who need regular amounts of money in order to fund each stage of the building project. An advance mortgage releases payments at the start of each stage. This is a good option to help with cash flow but expect to pay a higher rate of interest than with an arrears type mortgage. 

 

ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. MOST FORMS OF BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

To speak to one of our experienced mortgage advisers today about all your mortgage and protection requirements

Call FFP today on

01745 530020

or fill out the Contact Us form.

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