What is a self-build mortgage?

A self-build mortgage is a specialist loan for people building their own home. Unlike a standard mortgage, the funds are released in stages as the build progresses, rather than in one single lump sum.

When are the funds released in a self-build mortgage?

Funds are typically released at key milestones, such as: purchasing the land, laying the foundations, building the walls (wall plate level), making the building watertight (roof on), and final completion.

How much deposit do I need for a self-build?

Lenders typically require a larger deposit for self-build projects, often between 25% and 40% of the total project cost (land plus build costs).

What is the difference between arrears and advance stage payments?

Arrears payments are released after a stage of work is completed and valued. Advance payments are released before a stage begins, which is better for cash flow but often comes with slightly higher interest rates.

Do I need planning permission before applying?

Yes, most lenders require at least 'outline' planning permission to consider an application, and 'detailed' planning permission before they will formally offer and release any funds.

Couple reviewing architectural blueprints

Self Build Mortgages

Turn your dream home into reality. We help you secure the specialist stage-release funding required to build your own property from the ground up.

Start Your Self Build Journey

Funding Your Grand Design

Building your own home is an incredible adventure, but financing it requires a very different approach to buying a standard property. Traditional mortgages hand over all the money at once; a self-build mortgage releases funds in stages as the build progresses.

This protects the lender and ensures you have the cash flow needed for each phase of construction. Because these are niche products, working with an experienced broker is essential to ensure your project is fully funded from the first brick to the final lick of paint.

How Self-Build Finance Works

Stage Releases

Money is released at key milestones (e.g., buying the land, laying foundations, wall plate level, wind and watertight, and completion).

Arrears vs Advance

You can choose 'arrears' (funds released after a stage is finished) or 'advance' (funds released before the stage begins to help with cash flow).

Interest-Only Initially

During the build, you typically only pay interest on the money you've drawn down so far, keeping monthly costs low while you might still be paying rent elsewhere.

Preparing Your Application

Lenders will scrutinise your project heavily before agreeing to lend. You will generally need to provide:

Detailed planning permission (outline planning is rarely enough)
Comprehensive architectural drawings and building regulations approval
A realistic, detailed breakdown of build costs and a contingency fund (usually 10-20%)
A projected timeline for the construction phases
Details of your main contractor, architects, and project managers

Let us handle the finance

Managing a self-build is stressful enough without worrying about complex mortgage applications. We'll find the right lender, negotiate the stage releases, and ensure your funding is ready when your builders are.

Discuss Your Project

The Self-Build Stages

Unlike standard mortgages, self-build funds are released in stages as your home grows.

Planning & Land

Secure your plot and obtain detailed planning permission before applying for finance.

Stage Release Setup

We arrange a mortgage where funds are released at key milestones (foundations, wall plate, roof, etc.).

Site Valuations

At each stage, a surveyor visits to confirm work is complete before the next tranche of money is released.

Final Completion

Once the building is finished and certified, we can often switch you to a standard, cheaper mortgage rate.