To start, you will want to find a plot of land. You will need to have planning permission for a minimum of 12 months on the site.
To work out how much you can borrow, lenders will take your monthly outgoings into account, multiply them by 12 and then deduct this from your single or joint annual income. They will then apply a multiply of around 4.5 and this will give a measure of how much you could borrow.
Working out the costs for a Self-Build mortgage
The lender will ask for a breakdown of the build, for example foundations, interiors and roof as they will refund the bulk of the build costs.
Funds are released in stages, with the initial release to purchase the land then in stages during the project to meet the needs of your build. These payments can either be made in advance, so you’ll get the money before each phase, or in arrears where the offer is broken down into stages and once each stage is assessed by a surveyor, money will be released to continue the project.
If you’re considering a Self-Build Mortgage or would like further information, contact UK Property Finance today to enquire further.