The mort­gage for a house that isn’t even there?!

Build­ing your dream home stays a dream for some but for oth­ers, it’s a re­al­ity. . . But at what stage do you think about fi­nanc­ing – and do you know what type of mort­gage you need?

Scottish Field - - ABODE -

More peo­ple are choos­ing self-build to de­sign their home for the look, en­vi­ron­men­tal cre­den­tials and per­fect fit for their cir­cum­stances. Af­ford­abil­ity and avail­abil­ity are key fac­tors. Fam­i­lies are gift­ing land to chil­dren; older gen­er­a­tions are opt­ing for back gar­den down­siz­ing builds and first-time buy­ers are cre­at­ing their dream home be­cause of a lack of hous­ing.

A mort­gage to help build a home is dif­fer­ent from any mort­gage you may have had be­fore. With a tra­di­tional res­i­den­tial mort­gage, a lender of­fers a mort­gage for a com­pleted house and right now yours is only on paper.

A self-build mort­gage helps you stay fi­nan­cially sta­ble and money is re­leased dif­fer­ently, and, in most cir­cum­stances, of­fered on a staged-pay­ment ba­sis – ar­rears or ad­vanced (de­pen­dent on your lender).

Th­ese pay­ments are ar­ranged in ac­cor­dance with your cost­ings, which may dif­fer through­out the build – you may need a higher amount to be­gin, for the foot­ings, so the re­main­ing staged pay­ments will be smaller.

Some lenders al­low self-build mort­gages on in­ter­est-only terms whilst your house is be­ing built, keep­ing monthly mort­gage pay­ments as low as pos­si­ble which im­proves your cash­flow.

Our best ad­vice, from our own ex­pe­ri­ence and that of our clients, is that a pro­fes­sional project man­ager gives peace of mind and saves money. Ex­tra costs do creep in, so have a con­tin­gency of be­tween 10 and 15 per­cent built into your project. It is never too soon to speak to us.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.