How can I work out my mortgage eligibility and final build budget?

I have saved up a bit of money and would like to raise a mortgage and start planning my first self build project, but I’m not sure how much I will have in total for the land and construction. How do I go about assessing my funds?

To work out your self build budget, you must tally up how much money you already have available and how much you can borrow from a lender. Your contribution to the building works must be accessible cash, so if any of the money you wish to use is tied up in property, for instance, this must first be released.

Exactly how much you can borrow depends on your financial circumstances and the affordability of repayments. As with any mortgage, lenders will look at your income and outgoings to calculate how much they are willing to lend you.

Unlike a traditional mortgage, your borrowing is not limited by the plot or property’s current value. A standard self build mortgage will typically enable you to borrow up to 75% of your project costs, while other mortgages available through Buildstore offer increased borrowing of up to 85%, and in some cases 95% of your costs. As a general guide, you can expect the plot to account for around 50% of your total budget. If you already own a site, it may be possible to borrow enough to fund your build costs in full.