Please note: this service is not provided by The Mortgage Advice Professionals. We will introduce you to a specialist lending firm we are partnered with, who will advise you and arrange the finance. MAP will stay alongside you throughout, supporting you at every stage of the process
Funding a home you're building yourself
Building your own home is a different financial exercise to buying one. You need money released as the work progresses, not a single lump sum at completion — and you need it to arrive before you run out of cash, not months afterwards.
That's what a self build mortgage does. Funds are released in stages tied to the build: buying the plot, getting to foundations, wall plate, watertight, first fix, completion. The mortgage grows as the house does.
Mainstream lenders rarely offer these. The products come from a smaller group of specialists, and MAP can introduce you to partners who work on this kind of finance regularly.
Arrears or advance — the difference that matters most
The timing of stage payments can make a significant difference to how you fund the build. The two main approaches work very differently.
Arrears stage payments
Funds are released once each stage is finished and a valuer has confirmed it.
You need cash available to pay for the work first.
Advance stage payments
Funds are released at the start of each stage, so you pay builders and suppliers with borrowed money rather than your own savings.
If your budget is tight, this is often what makes the project possible at all.
The timing of the funding matters
Working out which type of stage payment you need is one of the more important decisions at the outset. It affects how much of your own cash you need to put into the project before mortgage funds are released.
Finance for different types of project
Self build and custom build finance can cover a range of projects, from building a completely new home to converting an existing structure.
Self build
A new home built to your own design, on a plot you own or are buying.
Custom build
A serviced plot, golden brick or self-finish property where a developer handles part of the work.
Renovation
Bringing a run-down or uninhabitable property back into use.
Conversion
Barns, chapels and commercial buildings turned into homes.
Knockdown and rebuild
Demolishing an existing house and building new on the same site.
Major home improvements
Extensions and structural work funded in stages.
The numbers need to work before the build starts
Self build projects that run into difficulty often do so on budget rather than on building. Underestimate the cost and you could find yourself with a half-finished house and limited funds left.
Review the numbers
Our partners review the numbers before anything is submitted to a lender, looking at the proposed costs and the overall viability of the project.
Work through the cashflow
They'll work through a cashflow intended to show that funds should be available at each stage — not just on paper at the start.
Consider the wider project
They'll also look at land status, planning, construction method, warranty and VAT reclaim, all of which affect which lenders will consider the project.
Build the cashflow around the stages
The aim is to understand when money is needed, when mortgage funds are expected, and whether the two line up throughout the project.
Funding follows the build
Stage payments are linked to the progress of the project, so the mortgage can increase as the house takes shape.
Plot
Buying the plot or securing the land.
Foundations
Getting the build to foundation stage.
Wall plate
Progressing the structure to wall plate.
Watertight
Reaching the stage where the building is watertight.
First fix
Moving through the first fix stage of the build.
Completion
Bringing the project through to completion.
Don't wait until the build has started
Whether you've identified a plot, are still looking, have plans drawn or just have a rough sketch, it's worth having the conversation early.
Some options can narrow once you've committed to a plot or started work.
The right finance should grow with the project
Building or substantially changing a home involves different financial considerations from a standard residential purchase. The timing of the funding, construction costs and the details of the project all matter.
MAP works with specialist partners who regularly arrange this type of finance. They'll look at the project as a whole and work through the funding requirements before introducing you to an appropriate lender.
If you're thinking about building your own home, it's worth starting the conversation before you've committed to the plot or started work.
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