self build mortgage brokers

Self Build Mortgages - Avail Mortgages

Our team of expert advisers here at Avail Mortgages have decades of combined experience, which has given them an abundance of knowledge and valuable relationships with lenders. This knowledge, and these relationships, are the key to the service they offer to clients, to help them find the right mortgage product for their needs. We understand that our clients want a straightforward, jargon-free service that gets straight to the point of finding them a suitable mortgage product, and, thankfully, that’s exactly what we provide.

Over the years, our brokers have established strong relationships with key mortgage lenders to provide our customers with a range of policies, exclusive mortgages and offers. We know that many find the prospect of getting a mortgage daunting which is why we’re committed to providing you with everything you need to know throughout the process, which allows you to then make fully informed decisions about your mortgage.


As a business and as a team of dedicated brokers, we are proud to work in line with the principles that are set out by the Financial Conduct Authority* (FCA) in their ‘Treating Customers Fairly’* (TCF) initiative. Whether you’re looking for a self-build mortgage or another type of mortgage or insurance policy with Avail Mortgages, the service we provide will be professional, reliable and honest. It’s important to us that each client that uses our services leaves feeling more confident and informed about their choices to find the right mortgage for them – it’s something we’re passionate about. And, helping our clients to find a self-build mortgage, is no exception.

Planning to build your own property is an exciting time. After all, it’s your dream home, and you’ve put money, time, hard work and dedication into the project. Whilst the prospect is exciting, planning on how to finance the construction can be a source of stress and worry. If you build your own home, a standard residential mortgage won’t be suitable for you. You need a self-build mortgage, designed specifically for those that are building their own property. Whilst this is a  specialist mortgage product, it can be hard to understand what’s out there and to navigate the process of finding the right option for you. That’s where Avail Mortgage Brokers are on hand to help, every step of the way.

We are proud to help customers across the North, in places like Harrogate, Sheffield and Leeds, and further afield across the UK. Wherever you are, we can give you the knowledge and the advice that you need to find a mortgage product that may be suitable for you. To find out more, get in touch by calling us on 0330 118 0383 or contact us online today.

what is a self build mortgage

What Is A Self Build Mortgage?

A self-build mortgage is a loan for a property that you are building yourself*. Unlike a traditional mortgage, this type of mortgage releases funds at different stages of the self-build project, rather than providing the money as one lump sum after the build is completed. The reason for this is that it reduces the risk for the lender. It ensures that the money is spent as originally planned for the build, and so that you have money at all stages during construction and do not run out of funds. Because a self-build mortgage is a niche product, it is usually smaller lending institutions that offer these products, such as specialist banks or building societies.

Whilst you will receive the funds in stages throughout building the property, the exact timing of this will vary depending on your lender. Typically, you receive your first payment once the plot of land has been bought*. Then, when foundations are laid, you will receive another instalment, as well as when the property is at eaves height*. You’ll receive later payments when the roof is complete and you have plastered walls within the property, then, the final payment is usually made once the property is fully complete.

Regarding your borrowing options, there are two main choices: an arrears type and an advance type of mortgage.

cartoon hand holding a house
Arrears Type Of Mortgage

An arrears type of mortgage is the most common for self-build projects. With this product, payments are made upon completion of each stage of the build. The reason for this is that the lender wants to ensure that they do not lend you more money than you need and that your project has worth (worth that can be used as security against your failure to repay) at every stage. As a result, money is given to the borrower once a property valuation has been conducted*, and the payments are therefore subject to this valuation. If you have a substantial cash injection to help fund the project, this type of mortgage may be the right option for you.

cartoon house with mechanic symbol
Advance Type Of Mortgage

Fewer lenders offer an advance self-build mortgage, but they are worth considering if you’d like to avoid short-term borrowing, such as bridging loans. With this type, you’ll receive funds upfront at the beginning of each build stage, meaning you’ll have money available to pay for building costs such as labour and materials. As such, this type provides certainty regarding your budget, and reassurance that you can pay any bills on time. If you do not have a lot of savings to fund the project as it progresses, this type of loan provides a consistent cash flow.

You may be eligible for a self-build mortgage if you are considering any renovations and conversion projects, all this will depend on the nature of the construction, however, many mortgage lenders do consider a range of construction types. Your mortgage adviser will discuss your project with you, to determine which products may be a suitable option. There are many different options out there, so we’ll ensure that you’re fully informed during the mortgage process so that you feel confident in your choice of product.

apply for a self build mortgage

Applying For A Self Build Mortgage

When applying for a self-build mortgage, there are two parts to the lending criteria. As with any conventional mortgage, lenders will conduct an affordability assessment to make sure that you can afford the monthly repayments* for the loan. With a self-build mortgage, the construction itself will also have to meet certain criteria for you to be granted a mortgage.

Regarding the latter criteria, your design and construction methods will need to be legal, legitimate and compliant with Building Regulations* – this is a standard set by any lender. Some lenders will not loan money on certain construction systems*, but our specialist brokers will help you to determine which lender offers suitable products for your construction. It’s important to communicate with potential lenders so that they are fully aware of your build type. Some lenders will ask that a qualified quantity surveyor gives them information regarding the costs of the build, whilst others will state that the work must be completed in line with a fixed build cost budget.

Our advisers will have the knowledge regarding a range of mortgage products and, using this, you will be able to select a solution that may be suitable for you.

Lenders will also need to know about the project costs and your budget control estimate. To provide them with this information, you should consider costs such as the purchase of land, planning permission*, project management, prior site preparation and construction design fees.

In addition to the documentation that is needed during the application process for a standard mortgage, you will need documents such as detailed planning permission, construction drawings, any relevant insurance and structural warranty and a Building Regulations package that provides evidence of your approval, as well as a Standard Assessment Procedure (SAP)* calculation for your energy performance. Other documentation may also be required, depending on the lender.

Lenders will also want to carry out an initial valuation of the property. This will establish its current value and the anticipated future value. You will be required to pay for these valuation fees, so this cost must be factored into your overall cost and budget for the building project. Interim and final evaluations will also take place as the project progresses.

How much of this mortgage can I borrow?

As with any mortgage, your lender will also assess your affordability to ensure that you can afford the loan and the monthly repayments to pay them back for the money that you borrowed. It’s important to note that where you choose to live whilst your property is being built will affect the outcome of the affordability calculation, whether you’re making rental payments or mortgage payments.

The main priority for lenders when conducting this assessment is to assess your monthly income versus expenditure. The borrowing limits vary depending on the lender and your own financial situation, so this assessment will be used to determine the amount that you can borrow. There are things that you can do to improve your chances of getting a mortgage* – for example, having a good credit history*, limiting your debt and staying out of your overdraft will all work in your favour. For the assessment, lenders will usually ask for documentation such as bank statements to see your income and expenditure, such as personal and living expenses such as regular bills. They will also use a credit report* to look at your credit history.

As well as assessing your current financial situation, lenders will consider any future changes that may affect your ability to make repayments. They will consider factors such as effects on interest rates and any potential alterations to your lifestyle, such as a change in your employment status. Lenders will make all of these calculations for you, but it is important to have an idea of the outcome and how this will affect the products that are available to you. With one of our specialist advisers, you can discuss your financial situation to ensure that they present you with bespoke policies that may be suitable.

You will likely need to put down a deposit of at least 25%, whilst some lenders ask for up to 50%. Interest rates for this type of mortgage are also usually quite high and, whilst regulated by the FCA*, lenders will not grant this loan if it is deemed unaffordable following your affordability assessment. However, by using our services and discussing your options with one of our mortgage brokers, you’ll have access to a range of policies, from numerous lenders, that may be suitable for your personal and financial circumstances.


Get In Touch

Whether you’re based in surrounding areas such as Leeds, Bradford and York, or further afield in the UK, our brokers can help you to find a self-build mortgage product that may well be suitable for you. When you choose Avail Mortgage Brokers, you have access to a client portal, to help make the process easy and straightforward and to allow you to view important documentation whenever you like, at a more suitable time. That’s just one of the many ways we put our customers first and deliver an exceptional service that’s built on transparency, honesty and convenience.

If you’d like to learn more about self-build mortgages and the services that we have on offer, get in touch with the team online, by calling 0330 118 0383 or by emailing [email protected]