How do self build mortgages work?
The main difference between a self build mortgage over a traditional mortgage is that the money is released in stages as the build moves forward, rather than as a single lump sum amount.
Self build mortgage lenders will release funds for you to buy land; this will normally be subject to the plot having a minimum of outline planning or permitted development rights. Full planning will need to be obtained before any work starts and the funding from the self build mortgage lender can start to be drawn down.
Typically, a 20% – 25% deposit is needed against the cost of the whole project (purchase of land & build costs). However, there are some self build lenders that will allow a lower deposit. If you already own the land you are looking to build on and you already have planning permission in place then a self build mortgage lender will allow you use the plot value to draw funds on day one of the build.
Depending on the self build mortgage lender, funds can be released in advance or in arrears of each build stage. Your cash flow for the project itself will often determine which self build lender is most appropriate.
A self build mortgage lender will release the funds for your self build in stages and below is a typical example for a standard self build:
- Stage 1
Purchase of land (remortgage if owned)
- Stage 2
Preliminary costs & foundations
- Stage 3
Wall plate level
- Stage 4
Wind & Watertight
- Stage 5
First fix & plastering
- Stage 6
Second fix to completion
What our customers say
I can’t recommend Tom from The Official Mortgage Company enough! He was incredibly efficient and friendly when answering all my questions. Tom went the extra mile to source an excellent mortgage deal and took the time to ensure my understanding of the information. His vast expert knowledge and professionalism provided me with confidence throughout this process.
Tom was able to source and advise on a number of potential products and advise us as to which he recommended. He managed the process painlessly from start to acceptance. He was more than happy to answer any of our questions promptly and I would definitely recommend The Official Mortgage Company. Thank you!
I just wanted to say a massive thank you for all the help provided by Tom and the company during the process of buying our first home. They made everything stress free for us during a difficult time in what was an unknown process. No job was too big and they were always happy to help whenever we needed to ensure we got the best outcome for us. We would definitely recommend and will be using you again in the future.
Working in Conveyancing I have dealt with many property transactions over the years, however, dealing with my own mortgage application seemed a little daunting at first. I have recently had the pleasure of working with Jason in a professional capacity and as a result decided to engage Jason for my own mortgage application. Jason has been approachable and assisted with any queries I had relating to my own mortgage application.
The process was easy and efficient. All queries were dealt with promptly and I would highly recommend Jason to family/ friends, colleagues and professional connections.
Jason has been fantastic from start to finish sorting our mortgage, as well as dealing with my stress levels and endless questions, he has been very calming, knowledgeable and professional throughout the whole process, hence we ask him to source and process our life insurances as well. we cannot recommend him enough. and will continue to recommend him to friends and family in the future.
We have used Tom & Siân at the Official Mortgage Company multiple times now and we simply wouldn’t go anywhere else! It’s so refreshing to have a personal, efficient and responsive mortgage service to go to! We always refer The Official Mortgage Company to our friends and family and they AWAYS come back extremely happy and satisfied. Can’t recommend this company enough. I wouldn’t go anywhere else!
Jason has been brilliant from start to finish. If you need a personable, professional and efficient mortgage advisor call Jason. We will definitely be using him again. Thank you. James & Sophie
Having previously brokered mortgages as Tom & Jason do now, I know just how hard and challenging the job is. I have been referring my previous clients and family to The Official Mortgage Company for the past 4 years and I have found them to be extremely efficient, capable and great communicators. More than anything though it is their approach to business of always doing the right thing for the client that has most impressed me.
Jason was recommended to us by friends after their positive experience. We were looking to purchase our first home and had no idea where to start. Jason was exceptional from the very beginning of our search, right through to picking up the keys to our home and beyond. Jason couldn’t have been more responsive. He was polite and courteous. Jason was able to identify good mortgage opportunities for us, enabling us to buy our perfect home. We could not fault Jason’s service nor recommend him enough. He helped to make the stressful situation of buying a house a lot more manageable by going above and beyond identifying mortgages for us. We will certainly be in touch if we ever decide to move home!
I’ve used Tom and The Official Mortgage Company for my last 3 Mortgages and will be using again very soon on remortgaging and a buy to let – always brilliant advice, friendly service and on the ball especially when rates are essential. My recent bridging loan to enable a buy to let refurbishment to go ahead was dealt with in days! Oh and he sorted out my insurances at the same time! Saved me hours of scrolling through the internet myself! Highly recommended.
Fantastic service as always. Jason is responsive and helped us buy our first home, then remortgage to buy help to buy out. I would recommend him to anyone.
Tom was amazing from start to finish. I felt at ease throughout the whole process. Stacie was also very professional and helpful. Thank you so much we couldn’t recommend enough.
Jason helped us through the initial stress and stages of our first home purchase, and has been absolutely fantastic from start to finish. An amazing personal, and professional, approach. Jason not only helped with our mortgage but also assisted in everything else needed, from life insurance to buildings and contents. It was truly a well-rounded experience, and I couldn’t recommend him enough! Thank you!
Jason has been a great help to me. The service that he provides could not be bettered. He found me just the products I needed and for a very fair fee. Always professional, courteous and timely. I would not hesitate to recommend The Official Mortgage Company to anyone in need of sound financial advice.
Tom has a wealth of experience and makes matters simple. Great value and access to whole of market. With a top-quality team behind him, The Official Mortgage Company is always on hand to help.
I was recommended Jason by a friend who said he was good at dealing with self-employed mortgage seekers. I can certainly back that up. My partner (who’s also self-employed) and I have just been approved for a mortgage and Jason made the whole process easy and stress-free. Thanks!
Thank you for all your expert help and advice getting my mortgage in place promptly and efficiently. If any issues arouse along the way, you were always available to guide and advise accordingly. You took off the pressure and made the process seamless. Again, thank you so very much for all you have done for my family. I would highly recommended Tom Guest.
The official mortgage company had been recommended to me by a friend of a friend because my remortgage wasn’t as straight forward as a usual mortgage application. Jason was appointed the task of finding me a mortgage that suited my situation (like I say not a straightforward one by any stretch of the imagination) and I have to say he’s certainly risen to the task! I’ve gone from not thinking I would get one, to having a mortgage offer and is set to complete in the next coming few weeks, all done in a matter of not even a couple of months thank you Jason I will certainly use your services again at the end of my mortgage product and will have no hesitation in recommending your company to anyone who requires mortgage application help or life insurance advice.
TOMC were excellent throughout the process of buying our first home. Tom answered our questions and gave us much needed advice as we were completely new to everything. I would recommend using TOMC because they are responsive no matter how busy they are, they’re friendly and extremely helpful. We will be using them again. Thanks again Sian and Tom!
I have had a fantastic experience with Jason completing my remortgage. He has made it as pain free as possible. He is professional but friendly and approachable. I have no hesitation in recommending him to anyone seeking mortgage advice. In 5 years, I will absolutely use his service again!
I can highly recommend Tom @ The Official Mortgage Company. He dealt with my remortgage quickly and effortlessly! Thanks Tom!
Jason has been our mortgage provider for both our first mortgage and our recently completed re-mortgage. In terms of the service we have received we physically could not ask for more, from start to finish it has been fantastic. To anyone reading this considering using Jason, please do not hesitate no matter what situation you are in first time buyer, poor credit, remortgage., Jason will be able to help you find the product you need.
I can’t thank Tom, Stacie, and the Official Mortgage Company team enough for all of their help over the last few months. The path to getting my mortgage approved was somewhat challenging at times due to my circumstances, but they have been so knowledgeable and helpful every step of the way. I absolutely could not have done it without their help, and I’ll be recommending them to all of my friends!
What an absolute pleasure it has been having Jason as our mortgage advisor for the second time. Cannot recommend Jason enough he is so helpful and just takes all the stress of remortgaging away. Thank you so much for all of your help 🙂
After being messed about for 2 months by other mortgage advisors, we only had a short period of time before the house we reserved went back on the market. Tom made everything seem so easy. We were kept informed at all times, any questions we had were answered in detail and responses were incredibly fast. Tom knew exactly where to look for our specific (difficult) needs. We couldn’t have done it without him. Would 100% recommend!
We had an absolutely fantastic service from Jason when we applied for a new mortgage! He’s extremely reliable, great at what he does and a superb communicator. Highly recommend.
This is the second time we have used Tom Guest as our broker. We had a very stressful completion yesterday, but Tom has been excellent from start to finish and made this daunting process seamless. He’s been a calming influence through the times when we thought a mortgage was not possible, but it was… Thank you Tom Guest, now we can build that family home
I would gladly recommend Jason and The Official Mortgage Company to anyone. Extremely knowledgeable and supportive throughout the whole re-mortgaging process. I will be utilising Their services for all future property transactions. A big thumbs up from me!
Tom has been looking after our mortgages and other financial matters for years now. His service has always been of the very highest level. Tom is a very friendly person and always responds very quickly to any queries and has without doubt always gone above and beyond to find us the best deals available. We couldn’t recommend him more highly.
We used Jason for our first home purchase and he was absolutely wonderful. Heard some horror stories from friends about their experiences with other mortgage advisors but was recommended to Jason by a family member! He was very responsive and guided us through things we were unsure of, couldn’t recommend him enough! Thank you Jason
I can only say good words about Tom and the services that he provides. Tom sorted out a couple of things for me and my wife’s personal and business interests. These ranged from life insurance through to commercial lending. He was always quick to respond with answers to any questions or concerns that we had and nothing was too much effort. In addition to his professionalism, we always found him to be attentive, accommodating and very personable. We will definitely use him again when required.
Tom has always been very clear in helping me to understand what i needed to know as dealing with mortgages can be a little confusing sometimes! He was very efficient and approachable. Nothing was ever too much bother. Definitely recommend his services.