Will My Build System Affect My Self- build Mortgage?

I’ve heard that the construction system we choose may impact our ability to get a mortgage on our self-build project. Is this correct? Sarah Faro

QArachel pyne SA YS: The build system you choose for your new home won’t necessarily affect your ability to obtain a self-build mortgage, but it can limit your borrowing options. Self-build mortgage lenders are complex in nature, with each lender having its own conditions when it comes to the design, build system and materials used for your new home. Typically, most traditional and modern building systems are acceptable to the majority of lenders.

Criteria tends to be more restrictive when it comes to the cladding material used (i.e. brick, stone, block and render, timber cladding, cement render board) as this is what protects your home from the elements and is key to its visual appeal.

Your mortgage lender’s main concern is that your new home provides them with suitable security and is capable of being resold and maintaining or increasing in value over the term of the mortgage. So when it comes to the outer skin, lenders tend to insist on standard materials that are durable, have a long life expectancy, and are visually appealing. With timber cladding, for example, some lenders will not lend on this due to its limited life expectancy of 20 to 30 years. However, there are lenders who have no issue with this, and others who will restrict the amount of timber used to a maximum of 25-50% of the overall cladding.

Before deciding on your build system – i.e. masonry, timber frame, oak frame, steel frame, SIPS (structural insulated panels) or ICF (insulated concrete formwork) – it’s important to get specialist advice early on to ensure it’s acceptable for mortgage purposes.