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:
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.
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.
FFP SolutionsOld Bank Chambers, High Street,St Asaph, LL17 0RD
Registered in England and Wales Company No. 08958626, Registered Address: Unit 32 Llys Edmund Prys, St. Asaph, Denbighshire, LL17 0JAAuthorised and Regulated by The Financial Conduct Authority. FFP Solutions Ltd is a credit broker and not a lender and is entered on the FCA register under reference 624257You can find FFP Solutions on the Data protection public register under reference: ZA056605
YOUR HOME OR YOUR COMMERCIAL PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
THE GUIDANCE PROVIDED WITHIN THIS WEBSITE IS SUBJECT TO THE UK REGULATORY REGIME AND IS THEREFORE PRIMARILY TARGETED AT CONSUMERS IN THE UK
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