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What is the best way to finance my self build project?


I’m looking to complete a self build that will cost £185,000 to construct. I own the land, which is valued at £135,000, and I have £63,000 in savings. I’m planning to remain in my current home until the build is complete and will then sell this and remortgage the new dwelling onto a low-interest deal. I have a mortgage on my current property. What would be the safest option – financiall­y – to make sure I don’t run short of funds at different stages of the build, and to ensure I can afford the monthly payments over the expected works durations of 12-15 months?

Without knowing your full financial details it is difficult to say precisely, but it would seem the best option is for you to arrange a self build mortgage. So I’d suggest you discuss your options with a specialist advisor. e offer you get will be based on affordabil­ity, income, age etc. But assuming you qualify, this would enable you to have a mortgage that you can draw down in stages as the works progress, as and when you need the funds

You are also able to retain your existing mortgage whilst having a self build product, so this should work for you. But your existing mortgage payments would also need to be taken into account for the affordabil­ity of your new one. Once the build is complete you can switch the rate to one of the normal lender residentia­l rates.

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