Argyllshire Advertiser

First build up your bank balance


Just as you cannot build a house without qualified profession­als and skilled trades people, you won’t build up your money without expert help.

The good news about building your own home is that you almost certainly get more house for your money. The bad news is that at the start you need more money for your house.

To kick start their finances, and the entire project, many people sell their homes and live on-site in a static caravan; their old home is helping build their new one. A storage container onsite to store possession­s will also keep costs down and both will have a resale value once the build is complete.

Remember that not all lenders will consider self-build mortgages and any who do, be they banks or building societies, often will only loan money on a fixed-price contract, or on an all-trades basis under the direction of a suitably-qualified project manager.

It is well worth your time to do a lot of initial research online so that you have plenty of ideas to discuss with your financial advisor.

Leading website, moneysavin­, advises that you use a mortgage comparison tool like theirs, or any others available, to see what is on offer for your situation.

Then use a broker to help match you with the best ones; this will include products exclusive to brokers who have access to special deals that are not directly available to customers. A broker is also clued up on which lenders are most likely to lend to you.

Make sure you check out the new wave of ‘eco’ building societies and ‘ethical finance’. With self-build designs having such great opportunit­ies to incorporat­e energy saving systems you can now find premium financial products aimed at properties with sound ecological footprints.

If you find the finances daunting but still want to go down the self-build route, think about ‘package deals’ where you buy a kit house and building services from an existing company as they often offer, or source, financial packages. This can save a lot of leg work and grief. They might also have plots available as well.

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