Self-Build Mortgage Brokers

If you’re considering a self build mortgage to finance your building project, using an experienced broker can help you in many different ways. A skilled advisor can take the administrative pressure off you, whilst you concentrate on the construction.

This guide explains exactly why getting advice from a specialist broker can help you accomplish your goals.

You’ll also learn about what’s involved in the process, how much this service costs, and the ways in which you can access the best rates with lenders.

How to find a mortgage broker for a self-build property

There are only a small number of brokers out there who have significant experience arranging this type of mortgage. The stages involved for a self-build property result in a different kind of loan structure and application process. So, it’s important that you speak with an experienced broker who’ll be able to best serve your needs.

Luckily, we’re here to make this step in the process much more straightforward for you. Our broker-matching service means we’ll introduce you to an expert who understands this process inside out. This allows them to get the result you want and the best deal available.

Make an enquiry with us and we’ll match you with a self-build mortgage broker for free.

Applying through a broker

This type of borrowing works differently to a standard mortgage. So, it’s worthwhile having a decent understanding of the overall process.

The exact timeline and structure will depend on your specific situation, but here’s a rough guide to give you an idea:

1. Gather up your documents, building plans, and any existing planning permissions.
2. Speak with a specialist broker who has experience securing self-build mortgages.
3. Discuss the building plans and land purchasing with your broker.
4. Your broker will approach lenders, find you the best deal for your circumstances, and you’ll be offered a rate based on the estimated final valuation.
5. Once the finance has been approved, you can begin construction on your property.
6. Your funds will be paid to you in stages (either before or after you complete each phase).
7. At each necessary stage, your broker will help to arrange the valuations and completion of the corresponding paperwork.
8. Once your home is complete, there will be a final valuation and sign off. Then, you’ll begin your scheduled mortgage payments whilst you enjoy living in your new house!

How a specialist broker can help you

Not every broker offers the same level of service or has a complete understanding of a market niche like this. Using a broker with specific experience in self-build mortgages is going to make your life much easier.

Not only will they be able to find you the best rates, pairing you up with the most suitable lenders, they’ll also assist with managing your application from start to finish. The brokers we work with are experts in securing mortgage financing for clients looking to build their own house.

The self-build process involves plenty of moving pieces and different parties to deal with. A skilled advisor in your corner means they can help you with this burden and arrange all necessary valuations at each stage.

Other benefits

Here are some specific examples in the ways in which you can benefit from the guidance and support of a specialist broker for this specific type of borrowing:

• Credit score review: after downloading your credit reports, they can evaluate your scores and direct you on ways you can improve before introducing you to the lenders who’ll be most accommodating to your situation. This will save you a lot of time and reduce the risk of any unnecessary rejections or marks on your credit file.
• Budgeting and plan preparation: a broker who understands the self-build process will be able to thoroughly review your plans and explain what lenders will and won’t accept. This can involve relaying borrowing limits or giving you details on the maximum number of building stages that each lender will be willing to offer.
• Arranging valuations: when it comes to financing a property you’re building, whether you opt for an ‘advance’ or ‘arrears’ payment structure – you’ll need professional valuations at each stage. Your broker will be able to walk you through these steps and put you in touch with suitable local valuers who can carry out this work.
• Assist with admin and paperwork: your strengths and interests may lie within the actual building process, not pushing papers and filling out forms. While you concentrate on the areas where you need to spend your energy, a skilled advisor will give you the necessary support elsewhere. This includes assisting with all the unavoidable paperwork that you’ll need to complete before, during, and after the application.

Can a broker help me access more lenders?

Yes. It’s often the case that not all mortgage deals are available to the public. And, some lenders will require that you’re introduced to them by a trusted broker. This lets them know that you’re serious and instils the lenders with confidence that you’ll be fully informed about the process.

So, if you want to set up this type of loan and use a broker, it’s crucial that you approach the right brokers. This is the best way to make sure you’re introduced to the lenders offering the best financial products available, providing you the funds and support needed to build a property yourself.

What you will need to provide

To make sure your broker can assist you in putting together a successful application, you’ll need to provide them details around your finances, personal circumstances, and building plans. This way they can pair you with the right lenders from day one, and arrange the best borrowing terms.

You’ll need to gather the following information and documents to allow them to give you the high level of service you need:

• Details around your employment, whether PAYE or self-employed.
• Proof of income, including: bank statements, your P60, 3 months’ payslips. Or, if you’re self-employed: at least two years’ certified accounts, details about current and upcoming contracts, proof of dividend payments or retained profit (if you’re a company director).
• Identity documents of all applicants showing your age and address (passport, driving licence, utility bills).
• Your credit history and current scores.
• Information relating to any past experience building or overseeing the construction of a property.
• The plans for the type of property you’re looking to build (a non-standard construction can be riskier for lenders and some lenders won’t discuss applications for semi-detached homes).
• Ownership proof for the land you’re planning to build on, or rough details for your purchasing plans (your broker will be able to guide you on your options for financing a land purchase).
• Evidence to show lenders that you have somewhere to live/can afford to live somewhere while the construction is taking place.

Broker fees and costs

You might think that the complex nature of this process can lead to annoyingly high costs and fees. Well, luckily for you that’s not always the case. If you speak to the right broker, this can still be a very affordable way to obtain a self-build mortgage.

Each loan will be tailored (to a certain extent) based on your personal circumstances and the property you’re looking to build. So there’s no fixed fee that applies to everyone. However, we’re here to help ensure you end up with the best value outcome and lowest costs possible. To make this happen, all the brokers we work with use our fair fee policy.

This just means that after we’ve introduced you to a specialist broker (for free), there’s no charge if they’re unable to deliver on your self build application. Either there will be no fees until your application is approved, or if you pay an upfront fee – it will be refunded should your mortgage request be rejected.

Speak with an expert self build mortgage broker

Taking steps towards arranging finance for a property you’re building is an exciting move. However, if you don’t receive proper advice, it can become a tiresome and lengthy process full of extra costs and paperwork.

We offer a free-broker matching service that also includes our fair fee policy. This means we’ll quickly assess your needs and pair you up with an expert broker for no charge. We’re confident they will be able to secure you a loan, and if not – there’s no cost to you.

Just call 0808 189 0463 or make an enquiry. We’ll set up a no obligation chat between you and an experienced mortgage broker who specialises in self-build loans and financing.