OTHER FINANCE ROUTES

I’ve specifically concentrated on mortgages in this piece as most of you will be contemplating building your own home, but there are other options out there. If you’re a developer building a series of homes, you could consider a development loan. These will be on different terms to a mortgage and will require a clear explanation of how the loan will be repaid, typically through a clear exit strategy showing how and when the homes will be sold. Bridging loans can also be useful, particularly for those buying at auction, buying land speculatively or buying an uninhabitable property that is currently unmortgageable. Typically, bridging loans cost around 2% of the loan value, but remember to allow for arrangement fees and any legal expenses.