What is a Self Build Mortgage?

If you have decided that your next home is going to be one that you have built yourself, you have a lot to think about – from finding the plot of land that is suitable for you to getting an architect to help you that specialises in building the type of home that you want like this residential architects London based company https://www.rbddesign

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Something else however that is one of the most important factors in all of this is how you will finance it. For many people, the answer to this is getting a self-build mortgage. Here is a bit more information on what this is and what it entails…

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A self build mortgage is a loan that you take from the bank, much like a normal mortgage. The biggest difference between the two however, is that the mortgage will be given to you in stages rather than in one whole lump sum at the beginning. It is done this way to lessen the risk to the bank if something were to go wrong with the building project.

As you get through the various stages such as the house being watertight then you will be eligible to receive the next part of the loan. There are various types of self-build mortgages, so it is worth looking into this. It is also worth being aware that there is more paperwork to deal with and the self build mortgage process is more complex than getting a standard mortgage so factor this into your decision too.