Self Build Mortgages | Overseas & Specialist Mortgages

TheMoveChannel.com | Self Build Mortgages

mortgage

Key information...

Interest Rates from: 4.50%
Minimum loan: £10,000
Loan to Value from: 100%

More information...

The main difference between a self build mortgage and a house purchase mortgage is that with a self build mortgage money is released in stages as the build progresses rather than as a single amount. There are two types of self build mortgage each defined by when you get money during the build. The traditional type of self build mortgage is on an �arrears� basis. With this type, the lender will release in stages, usually between 50% to 85% of the purchase price or value of the land and then will release the money for the build in stages to correspond with the build stages outlined above. The money for each stage is paid out at the end of the stage once the work has been completed and a valuer has visited the site i.e. in arrears of the work being done. An arrears self build mortgage is best suited to self builders who have sufficient savings to fund the early stages of the build as well as sufficient savings for the deposit on the land. If you already own the plot of land and can remortgage it to provide the funds to start the build or if you have already sold your existing house and have cash available to buy the land and start the build then an arrears mortgage may be the best option for you. Up to 100% finance is available depending on the assets you have to support the project. Over the last few years, the idea of building ones own home has become increasingly popular; entire swathes of the television schedules are dedicated to the subject. What was once a fringe activity, the province of the wealthy and eccentric, has become decidedly mainstream - so much so, in fact, that many banks and building societies now offer a 'self-build mortgage' to cater specifically for the growing number of people with 'grand designs'. This is a complex area, and as always, it pays to take advice from a qualified mortgage broker.

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