Stage Payments

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.

Clients need to work out precisely how much money they will need to pay out for materials, tradesmen and specialist services at every stage so that that the right funds can be made available at every stage.  For example a timber frame construction will be more expensive in the early stages than a brick and block build, because of the upfront funds needed to pay for the deposit and indeed the cost of the system, pre delivery to site.

Through BuildLoan, you can access two unique mortgage packages which are designed to suit the very specific needs of the self builder.  They are defined by when funds are released – in arrears or advance.

The table below illustrates the typical stages for a brick and block build, a timber frame build 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

Second fix to completion

Find out about Traditional Stage Payments
Find out about Advanced Stage Payments