Background

Finance is generally the biggest challenge that self builders face - with roughly two out of three self builders needing a mortgage to see their project through. While many lenders claim to offer self build finance, closer inspection of their products illustrates their lack of knowledge of self build issues. With an established house, the lender knows exactly what they are getting. With self build, there is an element of uncertainty, which causes many mortgage lenders to act cautiously and restrict the nature of borrowing.

The main difference between a self build mortgage and a house purchase mortgage is that self build funding is released in stages as the build progresses, rather than as a single amount. The table below illustrates the typical stages for a brick and block build, a timber frame and a renovation or conversion project.

Stage	Brick & Block	Timber Frame	Renovation/Conversion
1	Purchase of Land	Purchase of Land	Purchase of property
2	Preliminary costs & foundations	Preliminary costs & foundations	Preliminary costs & structural overhaul
3	Wall plate level	Timber frame kit erected	Wind & watertight
4	Wind & watertight	Wind & watertight	Plastering & services
5	First fix & plastering	First fix & plastering	Second fix
6	Second fix to completion	Second fix to completion	To completion

BuildStore has developed two unique mortgage packages which are designed to suit the specific needs of the self builder. They are defined by when funds are released to customers during the build process (in arrears or in advance) and are tailored to suit your customer's income and the stages of their project.

Traditional Mortgage

Our Traditional mortgage works on a typical arrears stage payment basis. But what you'll find with BuildLoan is that we can offer up to 85% on both land and build costs - around 10% higher than most other lenders. These higher percentages mean your customer will have more money, enhanced cashflow and greater flexibility.

Accelerator Mortgage

The award-winning Accelerator mortgage works on an advance stage payment basis. Recognising that not everyone has the money required to get to the first build stage - or is able to release equity from their existing property to buy or put down a deposit on land, BuildStore created the Accelerator mortgage which quite simply, releases the funds at the beginning of each stage rather than the end. With Accelerator, it's possible to borrow up to 85% of the cost of land or a renovation property and up to 85% of the cost of the building works.

To discuss your self build, renovation or home improvement client requirements with our experienced broker desk, or to arrange a decision in principle call 0845 223 4447.