So you’ve found your ideal plot, now how do you get the finances in place?

The Current Mortgage Market
Although there are self-build mortgages available, there is not a large number of these mortgages available and some of those that are available require that you already have the land (ie. they will not provide a mortgage to buy the land).  Since the recession began, the number of self-build mortgages available has vastly reduced and those that are available have changed their lending criteria to the point that most require around a 20-30% deposit to be paid - only allowing you to mortgage 70-80% of the project, so if your project is £300,000 for the land and the build togther, a 70% mortgage would require you to put down a £90,000 deposit, leaving £210,000 on the mortgage.

High Street Lenders
Although there are not many high street banks and building societies that promote self build mortgages some may and if you have a good history of lending or saving with a particular bank that may be taken into consideration with that lender.  Even if your bank does not promote self build mortgages you can always contact them to see if they would consider it.

Independent Financial Advisors (IFA's)
IFA's are individuals or companies that can help and advise you of the options available to you across the market and often have direct access to up to the minute and unusual products such as self build mortgages.  Usually an IFA will receive a commission payment from the company that you take out your mortgage with and therfore don't usually charge the individual, however, if they are going to charge you they should advise you of this before any work takes place so that you know where you stand.

At Getbuilding.co.uk we would recommend that you speak to a financial advisor to find the best way for you to proceed with financing your project as your own personal circumstances can influence which provider or mortgage would be most beneficial for you and your project.