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Why Choose Us
If you’re looking to build your dream home, a self-build mortgage could be the perfect solution. Unlike a traditional mortgage, this type of loan is designed to release funds in stages, helping you finance your build step-by-step.
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A self-build mortgage allows you to borrow money specifically for the construction of a property, rather than buying a pre-built home. The key difference here is that the funds are released at various stages of the building process—rather than as one lump sum—helping to ensure the project stays on track.
A self-build mortgage is a specialist loan that helps fund the cost of building your home. It’s not the same as a standard mortgage because the money is released in instalments as each stage of the build is completed. These stages might include:
This setup reduces risk for both the lender and borrower, ensuring that the funds are used appropriately at each step of the build.
Based on a mortgage of £300,000 at 75% LTV and 25 years
Speak with Us | Interest Rate | Mortgage Type | Monthly Repayment Amount | Total Fees | Max LTV |
---|---|---|---|---|---|
3.79% | Fixed | £1,174 | £30 | 75% | |
4.09% | Fixed | £1,198 | £0 | 75% | |
4.12% | Fixed | £1,210 | £1,499 | 75% | |
4.24% | Fixed | £1,224 | £1,025 | 75% |
There are two main types of self-build mortgages:
Funds are typically released at key points during the construction process. This might look like:
Stage | When Funds Are Released |
Purchasing the land | Upon land acquisition |
Foundations completed | After the foundation stage |
Construction (roof on) | Once the roof is complete |
Interior completion | After plumbing and electrical work |
Final completion and valuation | Once the property is fully finished |
Different lenders might release funds at slightly different stages, so it’s important to check the terms of your loan.
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Your Results:
You could borrow up to
Most lenders would consider letting you borrow
This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.
Some lenders would consider letting you borrow
This is based on 4.75 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.
A minority of lenders would consider letting you borrow
This is based on 5.5 times your household income, a salary multiple you will struggle to get without a broker. 5.5 times salary mortgages are usually only available under very specific circumstances.
Get Started with an expert broker to find out exactly how much you could borrow.
Get StartedGet expert advice immediately if...
If one or more of the above apply to you, it’s important to get expert advice before making an application. The right broker can help maximise your chances of approval based on your circumstance.
Building your own home can come with significant benefits:
Of course, there are some challenges to be aware of:
Building a home isn’t just about the mortgage. You’ll need to carefully plan for:
Yes, once your home is finished, you can switch from a self-build mortgage to a standard residential mortgage. At this point, your home will be valued, and the new mortgage will be based on its market value, similar to a traditional mortgage process.
Yes, some lenders offer land-only mortgages if you’re just buying a plot and haven’t finalised building plans yet. However, it’s more common for lenders to prefer a combined loan that covers both the land purchase and the construction.
As with any mortgage, a strong credit score can help you secure better rates on a self-build mortgage. Before applying, check your credit score and address any issues that could impact your application.
Get things moving, apply for a remortgage.
Free unbiased mortgage advice is just a phone call away.
A self-build project typically involves purchasing land, obtaining planning permission, and managing the construction process, whether by hiring contractors or doing some of the work yourself. It requires detailed planning and budgeting.
Approval depends on several factors, including your financial situation, credit score, and detailed building plans. Most lenders will require a deposit of 25%-30% and want to see planning permission and a clear project budget.
The amount you can borrow will depend on your income, deposit, and the projected value of the completed home. Lenders typically offer up to 75% of the land value and 85% of the build costs.
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Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT
©2024 AscotMortgages.co.uk – All Rights Reserved
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