Financing a Self-build or Custom Build Home

How to finance a self build home is one of the first questions to arise when thinking about commencing on a custom build / self build project.  Selecting the appropriate self build mortgage lender will depend on your own financial position.  Just like with any other mortgage,  it will be more expensive for you if you borrow a higher proportion of the cost your build.  Carry on reading for all the information you need about self build finance.

Key information about custom build and self build finance

self build mortgage

What make’s self build mortgages different to your standard mortgage is the fact that funds are released in stages rather than as one lump sum.  Some self build mortgage lenders will be prepared to lend you money in advance of each stage of your project (these are called advance stage payments or an accelerator mortgage).,  whilst others choose to lend after money after each stage is completed (these are called arrears stage payments).

BuildStore Finance are the countries leading lender for advance stage payments.

Typically a self build project is split into 6 easily identifiable stages.  This starts at stage 1 – the initial purchase of your land (plot), up to stage 6 – the completion of your house.  The chart below, courtesy of BuildStore, shows you the usual 6 stages of a timber frame house and a traditional brick and block house.

Brick & Block Timber Frame
Purchase of land Purchase of land
Preliminary costs & foundations Preliminary costs & foundations
Wall plate level Timber frame kit erected
Wind & watertight Wind & watertight
First fix & plastering First fix & plastering
Second fix to completion Second fix to completion

Check out the Homebuilding & Renovating website for regularly updated list of self build mortgages lenders.

At Czero Home we specialize in energy efficient custom build homes on serviced plots.  The countries leading self build mortgage lender for this type of build are the Ecology Building Society.  At Ecology they offer suitable self build mortgage products with standard variable rate discounts available depending on the efficiency of your new home.