Self Builds
Prospect Mortgage Services provide independent, sound and honest advice for your mortgage and protection needs.
Thousands of people build their own homes in the UK each year. Attracted by the prospect of acquiring the house that they want, built to the specification that they want and in the location that they want, it’s easy to see why so many people consider this option. Although a self-build home can work out cheaper than the price of purchasing an equivalent existing property, there are still substantial costs involved.
Overview
Self build mortgages represent specialist lending and differ from normal residential mortgages in that payments are usually made at a number of separate stages, which represent logical breaks in the overall building process
Typical stage breaks
- Purchase of land
- Completion of the footings and foundations
- Construction of the walls
- Roof on
- Completion
Some lenders will also allow customers to receive an initial stage payment to help them to buy the land as well as releasing funds at the more usual build stages.
Structural warranties and guarantees
Before lending on newly built homes, banks and building societies usually require either confirmation that an acceptable building standards indemnity scheme is in place or confirmation that the supervising consultant/architect can meet specified criteria. Lenders should be contacted to establish which guarantee/warranty providers they are prepared to accept and the criteria that the supervising consultant/architect must meet.
Construction
At the building stage, it is important to ensure you adhere to building regulations, know the different construction options available and are properly covered by insurance.
Regulatory requirements
As well as ensuring that appropriate planning permission is in place, you will also need to ensure that your build complies with building regulations. These are national regulations and contact needs to be made with the local authority Building Control Officer who will require details of the proposed new build.