Mortgages Northern Ireland Free Mortgage Advice NI
Building your own home is a massive undertaking and is not a decision that should be taken lightly, it can be an extremely stressful and time-consuming endeavour.
You will have to deal with builders, architects, and planning permission, not only that but you will need a Self-Build mortgage to finance the build.
Self-Build mortgages are structured in a different way than regular mortgages, instead of getting all the money in one lump sum the money is released in stages as the property is being built.
Self Build Mortgage Advice
For example, your lender may release the first stage when the foundations are finished, the second stage when the walls of the property reach plate level and the third stage when the roof has been fitted etc.
This means that you will have to start making repayments long before you ever live in the house.
Self-build mortgages definitely represent a much greater risk to the lender than a standard mortgage. The borrower could run out of money during the building process leaving the lender with a shell of a house which they may find difficult to sell on. For this reason, a Bank or Building society will usually only lend 60% – 70% of the assumed value.
You should also be aware that there are very few lenders who will lend money to buy the land this means that in order to buy the site you will most likely have to come up with the money your self.