Self Build

Self build mortgages appeals to a wide range of people. In the UK, there are many self build projects every year offering an appealing, cost-effective and sustainable way for your clients to get exactly the house they want. Securing the right type of funding is one of the first steps to a successful home building project and working with experts who understand the self build market inside out is important to both you and your customers.

BuildLoan

Securing the right type of funding is one of the first steps to a successful home building project. We’ve teamed up with BuildLoan, a division of BuildStore.

By arranging the funding with BuildLoan via the Legal & General Mortgage Club, you’ll get a better procuration fee than if you applied to the lender directly.

BuildLoan provides intermediaries with exclusive mortgage solutions designed specifically for customers who are building their own home, or converting/renovating an existing property, to live in or let out. Are you aware of the many issues facing people wishing to build their own home? Can you be sure you’re offering best advice?

BuildLoan have highly experienced, qualified self build mortgage advisers that are able to discuss your enquiry and guide you with unbeatable knowledge and experience in this area. They’ll give you the necessary tools to help you operate efficiently in this specialist market and they’re wholly committed to making the self build process quick, simple and hassle-free.

BuildLoan Exclusive Mortgage Key Features

  • Higher lending percentages – up to 95% LTV on land/property with outline planning and up to 95% LTV on build costs 
  • No need to sell current home first clients can stay in their existing home as they build their new one due to enhanced cash position offered 
  • More money earlier - particularly useful in the case of timber frame kits where client is required to pay for their kit early on
  • Unique advance stage payments or traditional arrears stage payments
  • Interest only available during the build to further improve cashflow
  • Overpayments allowed without penalty
  • Competitive rates and a choice of lenders
  • Less work and competitive procuration fees

BuildLoan’s funding solutions solve many of the common problems faced by self builders and renovators and make homebuilding more accessible and achievable. They understand that self-build can be complex and time-consuming, so they take care of all of the hard work on your behalf, freeing up your time to concentrate on other business.

Why Else Should You Use BuildLoan?

  • Excellent sales support to help you gain buy-in from your customers.
  • Cases checked and packaged by an expert team.
  • All stage payments handled by a dedicated team.
  • Regular contact with your customer, ensuring smooth progress of their project.

Submitting an Application
All the forms you need to submit a case can be found on their website.

If you need any further help call the BuildLoan Broker Desk on 0345 223 4447.

Register Now
Register with BuildLoan or call 0345 223 4447 

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Halifax

Additional documentation required

  • Schedule and cost of works to be provided by the supervising consultant/builder. This should include confirmation that any abnormal costs associated with the site and a contingency of not less than 10% has been factored into the costs.
  • Full planning consent, planning authority approved plans and a plan outlining the boundaries of the proposed security and access to and from the development to the highway.
  • Confirmation that appropriate insurance is in place during the construction of the property.

Additional self-build criteria

  • All full applications will be referred to an underwriter for review.
  • Customers can only have one pending self build application with Lloyds Banking Group.
  • Product transfers, term and repayment type changes and Transfer of Mortgaged Property changes will not be allowed until the property build is complete.
  • Customers can apply for a Self-Build mortgage on Interest Only where a suitable repayment vehicle is in place.
  • Existing Halifax customers cannot port their existing mortgage product on to a self-build mortgage.
  • Product fees can be added to the loan amount.

LTV/Loan size

Loan to Value – Maximum of 75% of the final value of the property and the loan must not exceed the combined costs to buy the land and build the property.

Loan Size – up to £1million (£300,000 for first time buyers).

Stage payments – Funds can be released in a maximum of 5 instalments. We usually release the money at the end of the following 5 stages:

  • Land Purchase
  • Footings and Foundations
  • Construction of the walls (Wall Plate Level)
  • Roofed In
  • Internal/Final Completion

The initial advance can be up to a maximum of 75% of the current value. Where funds are being released for land purchase it must also not exceed 75% of the price of the land paid by the applicant. Where all the land has been gifted the first installment will not be released until footings and foundations stage has been reached.

When the construction reaches the appropriate stages, further releases up to 75% of the current value, less the total amount already released, can be considered. However, for the penultimate stage release, at least 10% of the total loan will be retained, as a final release, until the property is complete and we are in satisfactory receipt of the final completion certificate, irrespective of the ability to release more based on the interim value.

The initial advance can be up to a maximum of 75% of the current value. Where funds are being released for land purchase it must also not exceed 75% of the price of the land paid by the applicant. Where all the land has been gifted the first installment will not be released until footings and foundations stage has been reached.

When the construction reaches the appropriate stages, further releases up to 75% of the current value, less the total amount already released, can be considered. However, for the penultimate stage release, at least 10% of the total loan will be retained, as a final release, until the property is complete and we are in satisfactory receipt of the final completion certificate, irrespective of the ability to release more based on the interim value.

Security

Properties must be for main residential use only. Second properties, holiday homes or properties which will be let are not acceptable.

We only accept Detached Properties.

Refurbishments and conversions will not be accepted.

No usage or occupancy restrictions are permitted.

We will not accept situations where the land is being or has been separated from either:

  • Surrounding/adjoining land which is in the ownership of the applicant or their family
  • A commercial venture owned by the applicant or their family

No remortgages of properties already under construction.

No applications for properties under construction where the applicant is not the original owner.

Applications may be considered where the customer is acquiring land with an existing property already in situ which is being demolished to make way for a new property. Where this occurs, the supervising consultant/developer must reflect any clearance and/or abnormal costs associated with the demolition within the schedule of work and costs provided.

Where the customer is the original owner and has commenced the build, this may be considered provided the build is not further than footings/foundations level.

The building project must be managed by either a builder or an independent supervising consultant and they must meet our building control and monitoring requirements i.e. an acceptable Buildings Standards Indemnity Scheme or meet the requirements for the self-build to be 'Consultant Monitored'. 

Conveyancer

For self-build we will appoint our own conveyancer to act on behalf of the Bank and the customer will appoint a conveyancer to act on their behalf. This provides a higher level of security for both us and our customer for more complicated mortgage advances.

There are three firms of conveyancers who have been appointed to act for the Bank in these transactions and the appropriate conveyancer will be appointed based on property location:

  • England & Wales – Enact Conveyancing Fax 0344 244 3376
  • Scotland – Aberdein Considine Fax 01244 585043
  • Northern Ireland – Wilson Nesbitt Fax 028 912 78199

The following should be noted:

  • The customer will meet the cost of their conveyancer but we will meet the costs of the firm acting for the Bank.
  • The customer must provide details of their conveyancer and be made aware that any offer made will be issued to the Bank's conveyancer and the customer's conveyancer will be contacted directly by the Bank's appointed firm.
  • On the rare occasion that the customer chooses one of the firms of conveyancers who will also represent the Bank, the conveyancer will be able to act for both the customer and the Bank with the customer meeting the conveyancing costs of the whole transaction.
  • The customer's conveyancer should not exchange contracts until authorised by the Bank's conveyancer to do so

Ipswich

Ipswich  offer up to a 75% LTV mortgage to help your customers purchase land or start their build. They normally limit the mortgage size maximum to £500,000 mortgage although for the right case they are able to consider lending more. They  lend in arrears with a minimum of 2 stage releases. There are not set stages and each one only costs £100. The applicants are able to remain on an interest only basis during the build with no repayment strategy in mind. Once the build is complete they are then able to switch to a repayment basis OR if they have a repayment strategy then they can stay on interest only. Additionally, they will offer the applicant a residential retention rate to switch on to and they do not have to pay any ERC fees to get out of their self build product. Even more beneficial to the applicant is that they can overpay up to 50% of the mortgage in the duration of all of our products, fee free!

 

Please see this link to show all of the necessary information that Ipswich require for a self build enquiry: 

Additionally, this link highlights the above information:

Melton

Help your customer to build their dream home with the Melton’s self-build mortgages. Their self-build mortgages are available for custom build, renovation and conversion and they offer lending in arrears or advance.   

As a leading provider of self build and renovation mortgages, they’ve helped many people realise their ambition to build their own dream home. They understand the entire self build process from start to finish, so you can rely on the Melton to help. This handy guide will give you a valuable insight into the key steps involved: 
 

Saffron

Self build represents a specialist but nonetheless a significant and growing opportunity for mortgage brokers. Although many self-builders will invest a significant amount of their own capital into their projects, many still require a mortgage and Saffron for Intermediaries has a range of self build mortgages available.

Mortgages as bespoke as your clients' home 

Key features of Saffron’s self build mortgages include the following:

  • Available for new build or refurbishing an existing structure
  • Can be interest-only or repayment basis
  • Funds will be released as stage payments
  • We are able to be flexible on when stage payments are made
  • Funds available to purchase a plot of land and for part construction
  • Can potentially lend on land value at outset
  • No early repayment charge
  • For more complex or particular requirements bespoke lending is available
     

For full product details click here (www.saffronforintermediaries.co.uk/residential-mortgages/#self-build-stages) where you can also download our free Guide to self build Mortgages.

Why Saffron?

  • With experienced underwriters - each case is assessed individually
  • We provide dedicated Business Development Managers to help with any queries and who will discuss cases with you prior to submission
  • You can easily submit a case via our online broker portal
  • Please submit a DIP selecting the current self build product applicable.

If you would like to discuss a potential application, please speak to either:

Debby Tedder on 01799 582925 or, Lewis Wheeler on 01799 582894, who will be happy to help.