Self Build Mortgages
Self build mortgages or stage payment mortgages are designed for the large number of people who are building their own home or undertaking a major renovation, extension or conversion project. Around 10 percent of all homes built in the UK - and 1 in 4 of all new detached houses - are self build, with around 20,000 people each year building or renovating their own homes. And their popularity is increasing.
The average self build project costs around £150,000, hence over two thirds of self-builders need a long term mortgage.

Self Build Mortgages Features
Despite the increasing propensity of UK citizens to build their own home, there are still probably fewer than 50 different self-build or stage payment mortgages on the market. These have varying features in terms of the maximum permissible LTV, underwriting policy, and the lender's attitude towards planning permission, building regulation approval and warranty. But the most important variation concerns the point at which lenders will release the funds. Some lenders won't release any money at all until the work is well underway, while others will advance the money to buy what is often the most significant expense - the land itself.