How do self-build mortgages differ?
The main difference between self-build and standard residential mortgages is that the funds are released in stages rather than as a single lump sum. This is to minimise the lender’s risk and ensure that the money is spent as planned so that you don’t run out part way through the project. The exact timings of when money is released will depend on the lender but the typical stages are: • Purchase of the land • Laying of the foundations • Built up to eaves level • When the roof is water tight • When the interior walls are plastered • Completion The proportion of the total loan that is released at each stage will vary from lender to lender.
