Self build mortgage / Grants

[Doireallyneedaname]

Partner and I have been toying with the idea of building our own home for some time however as complete novices we were under the impression we’d need to stump up the cash to be able to do so. The land is already there, so that part is sorted.

I have just discovered the self build mortgages & read the news about new grants ahead for self builds but I have absolutely no idea how any of it works.

Has anyone done this and if so can you please explain it to me?

Would we be able to start from scratch or is this just for people wanting to work with development companies etc who already have plans (which you can adapt)

How are mortgage amounts determined? Would you be entitled to the same £ you would for an ordinary mortgage?

The details of the help to build scheme are not released till the summer, do noons really knows.

How much cash to do have? The issue is cash flow. You need to pay for stuff and until it's all done and the house is built (in stages) the mortgage company won't release funds.

Drawings - planning and building warrant will be at less 10k
Foundations - depending on the lay of the land probably ~20k

At this point you should be able to access funds. The issue is that you are them going to spend a lot on materials to get the house up, and labour. Banks take ages so if you only have the self build mortgage you might find unable to proceed with the next stage unless you have other funding. Also, your builders are going to be mightly pissed off at you if you can't pay them, and if you can't pay them, they are unlikely to be willing to get the house to the next stage of completion so you can get funds!

Also, (in Scotland anyway) you are no longer allowed to connect rainwater pipes to the sewers, instead you need to have a soak away in the garden or have access to a suds ( which are built on new estates). You need to be 5 metres in every direction away from your boundaries for the soak away. This means that on some plots without that space with planning permission, you are not going to get a building warrant as you have can't fit a soak away. No building warrant = no building.

Take a look here: www.self-build.co.uk/self-build-mortgages/

This is on next weekend and might be good source of advice: builditlive.co.uk/advice-pop-up/