Tips on how you can reduce water wastage in your home.
With the number of new builds increasing across the UK, there are many of us looking to build our own home from scratch.
This can either mean finding a plot with planning permission or finding innovative ways of separating land with a home already on it.
When it comes to arranging a self-build mortgage the task is simple in theory, but many feel there is uncertainty of where to start. The good news is that the process doesn’t need to be difficult or complex.
What is a self-build mortgage and how do I get one?
You may be lucky enough to already own the plot of land if it forms part of your current property. You will need to appoint a solicitor to separate the title from the existing property. If you intend to do this, and you have a mortgage on your current home, you will need to gain the agreement from your current lender to release the land from their security.
If you are purchasing a plot of land to build on, you will need to consider its location and whether it has planning permission. If there is no existing planning permission, your choice of lender will be limited, as generally you will need this to purchase land with a mortgage.
If you are building on a plot you own or you wish to make any changes to pre-existing permissions you will need to apply to your local authority for planning permission. It is important at this point to ensure you have appointed a qualified architect to ensure the design of the property will satisfy planning requirements.
Securing finance for a self-build home may not be as daunting as it sounds. Self-build mortgages are not so different from ‘regular’ mortgages. The amount you can borrow is determined by assessing your income and commitments. The mortgage amount will also depend on the costs of the project and the value of the completed home. Funding can be made in set stages throughout the project as you build your home. What helps is that self-build mortgages are offered on an interest-only basis until completion of the build, which will keep initial costs down.
The beauty of self-builds is that, if managed correctly, they offer a cost effective way of owning your dream home based on your personal choice. Self-build doesn’t always mean excessively expensive, exceeding your budget is not the norm if it is managed correctly. The reward is a home that is perfectly suited to your lifestyle.
If you’re looking to build your own property and would like to talk to us about a mortgage, please contact us and arrange an appointment in a branch local to you or by telephone. Alternatively, read our self-build guide here.
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE