Building your own home? Finance that releases as you build.
A self-build mortgage funds a home you're building yourself, releasing money in stages as the project progresses rather than in one lump at purchase. Funds come either in arrears (after each stage) or in advance (before each stage, better for cash flow). As a whole-of-market, FCA-authorised brokerage, we match self- and custom-builders — including contractors paid on a day rate — to lenders comfortable with staged lending.
- Assessed onHousehold incomeSalary and other qualifying income
- Income multiple~4.5×Some lenders stretch higher
- Deposit from5%Low-deposit schemes available
- AdviceWhole-of-marketDirectly FCA authorised
How self-build lending works
Instead of one advance, the loan is drawn in stages tied to build milestones — foundations, wall plate, wind and watertight, first fix, completion. Each release is usually confirmed by a valuer's site visit. Advance-stage lenders release money before each phase, which avoids you funding works upfront; arrears-stage lenders release after.
Deposit, land and costs
You typically need the land (or its value as equity) plus a deposit against the build cost — often 20–25% of the total. Lenders assess the land value and the projected finished value, and lend against the lower of cost or value at each stage.
Custom build and the finished mortgage
Custom build (a serviced plot with a developer framework) works similarly. On completion, many borrowers remortgage the self-build facility onto a standard residential deal — see remortgage and new build.
Contractors and self-build
Day-rate and self-employed income is assessed the same specialist way as any contractor mortgage — see IT contractors. We combine that with staged-build criteria.
Talk it through
Speak to an adviser with your plot, budget and plans for a tailored self-build plan.
Self-build and staged-release lenders — a selection
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Self-Build & Custom Build Mortgages, answered
What is a self-build mortgage?+
It's a mortgage that releases funds in stages as you build your own home, rather than in a single advance, with each release usually confirmed by a valuer.
How much deposit do I need for self-build?+
Often 20–25% of the total project (land plus build), though it varies. Owning the land outright can count towards this.
What's the difference between advance and arrears stage payments?+
Advance-stage lenders release money before each phase, easing cash flow; arrears-stage lenders release after each phase is complete, so you fund works first.
Can I get a self-build mortgage as a contractor?+
Yes. Your day-rate or self-employed income is assessed the specialist contractor way, then combined with staged-build criteria.
What happens when the build finishes?+
Many borrowers remortgage the self-build facility onto a standard residential rate on completion, often at a better rate.