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What is a Self Build Mortgage?

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A Self Build Mortgage is a mortgage loan generally secured on a site, run-down property or barn conversion with full Planning Permission and Building Control.   The loan is based on the current and end value of the property.  Money is released in stages as the build progresses and rarely exceeds 75% loan-to-value* (LTV).

Each Self Build Mortgage lender has individual views on the risks involved and generally structure their offering accordingly.  Therefore careful research is required before applying for a mortgage.

*Loan-to-value is the ratio of mortgage debt to property value i.e. if the mortgage is £100,000 and the end value of the property is £200,000 then the LTV is said to be 50%

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