The popular Self Build Show is again running in the King’s Hall, Belfast from 18 – 20 February, with all the latest construction products and technologies on show.
With sites available with full planning permission from as little as £40,000, builders slashing their costs and interest rates at a record low, could this be the ideal time to build your dream home?
On average, it costs 25-30% less to build your own home, but in the current market the saving could be even higher. It is a good idea to sort out your finances as early in your project as possible, and despite the gloom and doom in the press it is perfectly possible to obtain a mortgage. There are a number of different lenders offering specialised self build mortgages, usually up to 75% of the value of the finished house. There are some excellent mortgage deals available so always shop around, or get an independent adviser to do this for you.
The amount you can borrow on a self build mortgage is assessed on your income and circumstances in exactly the same way as a standard mortgage. Any existing commitments such as a current mortgage will reduce the amount that you can afford to borrow, but this does not necessarily mean you have to live in a caravan on site! Many people will stay in their current home while the new one is built, and then keep their old home as a rental property. Self build mortgages are also available for first time buyers.
The main difference from a standard mortgage is that the money is not released by the lender all in one go, but in separate payments at different stages of the build. This is usually done in arrears, so you could be a good few weeks into the build before any money is released and do need to budget for this. However, some lenders will release money in advance and some will lend against the site even if you already own it.
For further advice on self build mortgages, please contact Freedom Financial Planning on tel 028 90229798 or e-mail email@example.com.
Your home may be repossessed if you do not keep up repayments on your mortgage.