Building your own home is an exciting idea, but financing it is very different from buying a property that already exists. A self build mortgage is designed to support people who want to create a home from the ground up, with funds released in stages as the project progresses. At Key Mortgage Advice, we help clients understand how these mortgages work, what lenders expect and how to prepare for each step.
Whether you’re exploring the idea for the first time or already planning your build, our experienced mortgage brokers in Southport, Garstang and Preston can guide you through the process. We provide local support alongside access to a wide range of lenders, making the process clearer and less overwhelming. Contact us today to make a start on securing your self build mortgage.
What Is A Self Build Mortgage?
A self build mortgage works differently from a standard residential mortgage. Instead of releasing the full loan amount when you buy a property, the lender provides funds in stages as your build progresses. This structure reduces risk for both you and the lender, while giving you access to money at the times you need it most.
The stages usually cover key points such as:
- Buying the land
- Laying foundations
- Constructing the walls
- Fitting the roof
- Final completion
At each stage, the lender will often require a valuation to confirm the work has been completed before releasing the next payment. This approach ensures that your funding keeps pace with the build itself. For more information on self build mortgages and what we can do to help call us on 01772 620000.
How Does It Work?
The advantage of a self build mortgage is that you don’t take on large debt upfront for work that has not yet been carried out. It also means you can plan your budget more effectively, knowing when funds will be available and what each release is intended to cover.
Here at Key Mortgage Advice, our team can explain how different lenders structure these stages, so you know exactly what to expect before you start. You can also use our mortgage calculator to get an idea of your borrowing potential before beginning the process.
For many people, this kind of mortgage makes building a home realistic and manageable. It gives you control over the process, while still providing the security of professional financial support from an experienced mortgage broker.
How Much Can You Borrow With A Self Build Mortgage?
The amount you can borrow depends on both your financial circumstances and the value of your self build project. Most lenders limit borrowing to around 80 percent of the total project cost or the expected completed value, whichever is lower. For example, if your self build is projected to cost £300,000, you may be able to borrow up to £225,000.
Some specialist schemes offer more flexibility. The key is having a clear build plan, with accurate cost estimates and an understanding of affordability, lenders usually assess this based on your income, outgoings and overall financial position.
Our experienced mortgage brokers in Garstang, Preston and Southport can guide you through these options and help you understand how much you could realistically borrow for your self build project. Our team works closely with a range of lenders to find a mortgage that fits your plans and budget, giving you clear advice at every step.
Email us today at enquiries@keymortgageadvice.co.uk to speak to our friendly team.
Borrowing More For Renovations
Some self build mortgages allow you to include additional funds for renovations or improvements. This can help cover essential work or upgrades once the main construction is complete. Lenders may consider the value of the finished property when deciding how much extra you can borrow, but the exact amount depends on your circumstances and the lender’s criteria.
We can support you in exploring your options. Our local advisors assess your plans, your finances and liaise with lenders to see if your mortgage can accommodate renovation costs. Whether you’re building from scratch or adding to an existing property, we help ensure you have the right guidance to make informed decisions.
First Time Buyers And Self Build Mortgages
First time buyers can access self build mortgages, though the process may differ from standard mortgages. Lenders usually assess your financial situation carefully, including income, savings and deposit size. You may also need a detailed plan for your build, showing costs and timelines to demonstrate affordability and reduce risk.
Our mortgage brokers in Southport, Preston & Garstang guide first-time buyers through the self build process. We help you understand what lenders require, explore suitable products and provide support from planning to securing your mortgage.
Secure Your Self Build Mortgage With Key Mortgage Advice
A self build mortgage can make your dream home a reality, but having expert guidance is key. Our mortgage brokers in Garstang, Preston and Southport are here to guide you through every step, from understanding how much you can borrow to managing funds for renovations.
We also offer support across a wide range of other mortgage services, including buy to let mortgages, commercial mortgages and remortgages, ensuring you have access to the right product for your situation.
Use our mortgage calculator to estimate repayments, contact us on 01772 620000 or email us at enquiries@keymortgageadvice.co.uk to start your self build journey today.
