Self build finance
Funding to build your own home on land you own or are buying, with staged drawdowns released as construction progresses, rather than a lump sum on completion.
What is self build finance?
Self build finance funds the construction of a single home for you to occupy, as distinct from a development scheme built to sell or let. Because the borrower is also the eventual occupier, underwriting looks more like a residential mortgage assessment layered onto development-style staged drawdowns.
Some lenders release funds in arrears against completed stages of work; others release ahead of each stage so cashflow doesn't stall the build. Which structure suits you depends on your own working capital position.
Who it's for
Individuals building a single home on land they own or are purchasing.
Self and custom builders using a package-company or main-contractor route.
Anyone converting or replacing an existing dwelling on their own plot.
How it works
Eligibility
Full planning consent required. Available whether you own the plot outright, are purchasing it as part of the facility, or already hold a mortgage on an existing home being replaced.
Costs
Rate and fees vary by drawdown structure — arrears-stage facilities are typically priced slightly below advance-stage ones, reflecting lower lender risk. Indicative figures — subject to status, valuation and lender criteria.
When to use self build finance vs. the alternatives
Questions on self build finance
Do I need to have bought the land already?
No — land purchase can be funded as part of the same facility, provided you have planning consent or a clear route to obtaining it.
What is the difference between arrears and advance drawdown?
Arrears-stage lenders release funds after each stage of work completes; advance-stage lenders release ahead of a stage, which helps cashflow but is typically priced slightly higher.