Self-Build Plot Finance

Self-build plot finance is designed specifically for those looking to build their own home. This type of finance differs significantly from standard mortgages, offering staged drawdowns as your build progresses and understanding the unique challenges of self-build projects.

Financing Plots with vs Without Planning

• With full planning: Typically 75-85% LTV available, lenders can see the end value
• With outline planning: Usually 65-75% LTV, lenders assess potential based on outline consent
• Without planning: 50-65% LTV, higher risk for lenders, may require planning application in progress

Self-Build Mortgages vs Loans

Understanding the different finance options:

• Self-build mortgages: Staged payments released at key build milestones (foundations, watertight, completion)
• Self-build loans: Short-term finance that converts to a mortgage upon completion
• Bridging finance: For securing the plot, then refinancing once planning is obtained

Staged Drawdowns Explained

Self-build finance typically releases funds in stages:

• Stage 1: Land purchase (if not already owned)
• Stage 2: Foundations complete
• Stage 3: Watertight stage (roof on, windows in)
• Stage 4: Completion and final inspection

How Valuers Assess Self-Build Projects

Lenders consider:

• Land value + build costs + professional fees
• Final Gross Development Value (GDV) of the completed property
• Your ability to fund any shortfall between loan and total costs
• Typically 70-80% of build costs can be funded, requiring 20-30% deposit