Self Build Mortgages NI
Self-build mortgages work differently from regular home purchase mortgages.
You won’t get all the cash upfront, instead the money will be released in stages as your home is being built for example your lender may release cash when the foundations are complete then release the next lump sum when the property reaches wall plate levelthen when the roof is fitted etc.
You may have to start making repayments on the loan as soon as the first lump sum is released so it’s important that you understand the details of your mortgage before you sign the contract.
Self-build mortgages undoubtedly represent more of a risk to a lender for example a borrower could run out of money half way through the project in this case the Bank or Building society would be left with a shell of a property which they could have difficulty selling on, as a result you will be require a larger deposit than you would need for a home purchase usually around 30% – 40%. It’s also worth noting that the majority of lenders will not lend money on the site itself however there may be options if you do not already own the land.
You will also be expected to hire registered professionals throughout the project who have the correct indemnity insurance in place incase anything where to go wrong.
If you are unsure of the process you should always use a professional mortgage broker who can guide you through the process. Mortgage Adviser NI will never charge you a fee for our services contact a Mortgage Broker today.