Self Build & Custom Build Mortgages
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Building your dream home…. With an ever-increasing demand from consumers, Mayfair Life and Mortgages have the knowledge to help achieve your goal – Self Build mortgages provide the necessary funding for the purchase of land, and funding for the build cost.
How Do Self Build, Custom Build And Conversion Mortgages Work ?
The main difference between self build and custom build mortgages over a traditional mortgage is that the money is released in stages as the build moves forward, rather than as a single amount.
Lenders will release funds for clients to buy land, subject to the plot having a minimum of outline planning or permitted development rights.
Typically 20% cash deposit is needed against the cost of the whole project (purchase of land & build costs).
Those who already own land and have detailed planning agreed can use the plot value to draw funds on day one of the build.
Funds can be released in advance or in arrears of each build stage. The cash flow of your project will dictate our recommendation to you.
A Self Build, Custom Build or Conversion is a lot more complex than a standard purchase. Mayfairlife and mortgages are very experienced in property development projects and understand the importance of cash flow, therefore we help to ensure you have enough money to fund your project day to day with no delays. We understand the importance lenders place on certain areas of underwriting such as location of the plot, affordability, income & construction method.
Self Build Mortgage - FAQ's
Not necessarily, generally a 20% deposit will be required to start your self build project. However if you already own the land and dependent on its value it could be possible to mortgage the entire build cost.
This will depend on how you wish to finance your self-build, your affordability and how much available deposit funds you have.
Yes, Mayfairlife & Mortgages have negotiated interest only self Build mortgages with various lenders to provide streamlined repayment terms to best assist cash flow during the build.
Yes, you will need to have adequate insurance in place before any lender will release funds to you. We can help to arrange on site Insurance and Structural Warranty products that offer comprehensive cover at competitive rates.
With so many factors to consider – construction type, design, ground conditions, etc – it makes sense to consult an expert with in-depth knowledge not only of self build mortgages, but also construction. What’s more, by approaching a specialist mortgage adviser like Mayfairlife & Mortgages, you will have access to a wide range of lenders and products, who will confidently recommend the mortgage product that is the right fit for your individual circumstances and project requirements.