Do I need to own the land first?

Not always. Some self-build mortgages include land purchase as the first stage payment. Others require you to own the land outright before applying. We'll match you with the right lender for your situation.

Can I do the building work myself?

Yes, but lenders will want to see evidence of your competence — such as relevant trade qualifications or experience. Most lenders prefer you to use qualified contractors for structural work.

How long does a self-build mortgage take?

The mortgage application typically takes 4–8 weeks. The build itself depends on the project scope — from 6 months for a kit home to 18+ months for a custom design. Lenders usually allow 2–3 years for completion.

What about VAT on a new build?

If you're building a new residential property, you can reclaim VAT on most building materials and contractor costs via HMRC's DIY Housebuilders Scheme. This can save you 20% on eligible costs.

Self-Build Mortgages

Building your own home? Self-build mortgages release funds in stages as construction progresses. We'll find the right lender and structure for your project.

How Do Self-Build Mortgages Work?

Self-build mortgages are designed for people who want to build their own home rather than buying an existing property. Unlike standard mortgages, they release funds in stages — typically when the land is purchased, foundations are laid, the property reaches wall height, when it's wind and watertight, and at completion. This means you need less cash upfront than paying for everything in one go.

Stage payments released as construction progresses
Land purchase finance included
Both advance and arrears stage payment options
Custom and kit home builds accepted
100% fee-free mortgage advice

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Tell us about the property

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Property Value (£) *

Deposit Amount (£)

Your home may be repossessed if you do not keep up repayments on your mortgage.

Advance vs Arrears Stage Payments

With 'advance' stage payments, the lender releases funds before each stage of construction — so you have money to pay builders and suppliers. With 'arrears' payments, funds are released after each stage is completed and signed off by a surveyor. Advance payments are easier to manage cash-flow wise, but fewer lenders offer them.

How Much Can You Borrow?

Self-build mortgage amounts are based on the projected value of the completed property, not the cost of the land and build. If your plot costs £100,000 and the finished home will be worth £400,000, lenders may offer up to 75–80% of the finished value (£300,000–£320,000). This means your costs could be largely covered by the mortgage.

Finding Land & Planning Permission

Before applying for a self-build mortgage, you'll ideally need a plot of land with planning permission (or at least outline planning). Some lenders will consider plots where planning is expected. We can advise on the best sequence — whether to secure the land first or arrange finance first.

Custom Build vs Self-Build

Custom build involves working with a developer who provides the plot and builds to your specification. Self-build means managing the project yourself, potentially with an architect and contractors. Both routes can be financed, and some lenders specialise in one or the other.