Can I get a Mortgage to build my own home?
If you are considering building your own home, then you will need some specialist advice. At Aspire Financial Services we understand the apparent complexity of financing such a project and we can explain this in simple terms and source the best funding.
Self Build Mortgages in Cheshire
Self-build mortgages are the same as residential mortgages, in the sense that you take out a loan to acquire a property. However, whereas residential mortgages release the mortgage funds as a single lump sum to purchase a property, with self build mortgages in Cheshire the lender releases the money in stages (sometimes known as tranches) throughout the build process.
Once you have found a plot of land, with the correct planning permission, it is possible to obtain a mortgage to purchase it. A lender might offer from 50% of the value of the land up to a maximum of approximately 75%.
Depending on your own circumstances, you might want to seek as much lending as you can on the land and use your own funds towards the build, reducing the number of stages required.
Exactly when funds are released varies from lender to lender, but common stages include an initial release to purchase the land, and further releases when the property is, for example, completed to first-floor level, completed to eaves, and when the roof is made watertight. The final stage is released upon completion of the build.
It’s common for the mortgage to operate on an interest-only basis until the final release of funds, upon which it switches to a repayment mortgage.
Sound Advice
If you are considering carrying out a self-build project, this is where the best advice comes in. Call Aspire Financial Services to start the conversation and we can talk you through the pros and cons and get the funding ready.
Book a free 30-minute introductory call.