key points in the construction process—such as land purchase, laying foundations, and completing structural work—to ensure that the build progresses as planned.
THERE ARE TWO MAIN TYPES: • Arrears Stage Payment Mortgages – Funds are released after each construction phase is completed and inspected.
• Advance Stage Payment Mortgages – Funds are released before each phase, helping those who lack the upfront capital needed to begin each stage of work.
Lenders require a detailed build plan, planning permission, and professional cost estimates before approving finance. Since it’s a specialist loan, there are fewer providers to choose from than for standard mortgages, and rates may not be as comparable to standard mortgages seen on the high street.
THE BENEFITS OF SELF-BUILD HOMES Choosing to build rather than buy offers several advantages:
• A Home Designed to Your Needs – Buyers are not restricted by what is available on the market.
• Cost Efficiency – Self-builders may be able to get more for their money compared to purchasing from a developer, if carefully budgeted from the outset of the project.
• Energy Efficiency – New homes can be designed to higher sustainability standards, with solar panels, heat pumps, and modern insulation helping to lower long-term energy bills.
THE CHALLENGES OF SELF-BUILDING Despite the advantages, building a home is not without its hurdles. Key challenges can include:
• Finding Land – Suitable plots can be difficult to source, and competition is high.
• Navigating Planning Permission – The approval process can be complex and time-consuming.
• Managing Costs and Timelines – Unexpected costs and delays are common, making financial planning crucial.
IS HELP TO BUILD THE RIGHT OPTION? The Help to Build scheme, combined with increasing availability of custom build mortgages, is making self and custom-build homes more accessible to a wider range of buyers.
For those willing to take on the challenge, self-building offers the opportunity to create a bespoke home, often at a better price than buying from a developer. While it requires careful financial planning and patience, government support is making this route more achievable than ever before.
Would-be self-builders should ensure they understand the process, costs, and financing options before embarking on their project—but for many, this could be the key to owning a truly tailored home.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
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For further information please contact Peter Hunt on: 0121 503 0961
www.moneywatchfinance.com
Peter is one of the panel experts for the Grand Designs live TV show and has been recognised in the Times Vouched For guide to the UK’s top rated financial advisers every year since 2019
LIVE24-SEVEN.COM
THE MIDLANDS PROPERT Y GUIDE MONE YWATCH F INANCE
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