Can You Get A Mortgage To Build A House?
In this guide, we’re explaining whether it’s possible to get a mortgage to build a house. The short answer is yes – you can get a loan to build your own home. This is known as a self-build mortgage. They are designed for people who are looking to design and build their own home.
Perhaps you’ve searched high and low for a property in your area and just haven’t found the one. If you’re looking for your forever home, a place to settle to potentially raise a family or retire, you’ll want the house to feel like home. If you’ve found the location but not the right house, you may be considering building your own property. This may have been a dream of yours all along.
If you’re already reading up on mortgages, chances are you’re aware of the benefits of building your own home. A place that’s designed to your exact taste, that doesn’t cut corners on the quality or the elements that matter to you. A self-build can work out cheaper, too. You just have to budget effectively and always anticipate delays and unexpected costs.
Help to Build Scheme
The good news is that the Government announced a Help to Build scheme with lower deposits to encourage more people to build their own homes in the UK. This means that now is a more accessible and affordable time to try your hand at developing a property from scratch. It will take a lot of time and planning, but the benefits of having a house that’s of your own making can be worth the work.
How are self-build mortgages different to residential mortgages?
- Self-build mortgages are designed to cover the costs of the building work
- Repayments are made in instalments as the construction progresses
- This is typically split into five or six lump sums
- Two main types include: arrears-stage payment and advance-stage payment – a mortgage advisor can talk you through your options
What about new-build mortgages – how are they different?
In comparison, new-build mortgages are designed for new homes that are not being developed by you. You’re buying from the outlined plans and specifications.
As a Whole of Market mortgage broker in Peterborough, Agentis works with a wide range of lenders, including specialist mortgage providers. This means we can match you with the right lender and deal. Whether you’re eyeing up a building plot, or in the early days of searching for one, speak to Agentis today.
