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Your Build - Spring 2018

you ca n borrow u p to 85% Depending on your fi nancial circumstances, Stage Payment Mortgages A self-build mortgage differs from a standard house purchase mortgage, because the money is released in stages as the build progresses, rather than as a single amount. BuildStore has developed two mortgage packages specifi cally for self-builders, defi ned by when funds are released during the build, either in arrears or advance. With an arrears Stage Payment Mortgage, funds are released to buy the plot, and then the money for the build is released as each stage is complete, and a valuation carried out. The Accelerator Stage Payment Mortgage (created by and exclusive to BuildStore) releases funds at the beginning, rather than the end of each build stage. Accelerator ensures you have the cash you need, when you need it, to pay your tradespeople and suppliers, and as a cash buyer you can take advantage of the best deals and time restricted offers on materials. With BuildStore’s exclusive products, depending on your fi nancial circumstances, you can borrow up to 85% in arrears and 95% in advance. If you already own your plot, it may be possible to borrow up to 100% of your build costs. 12 SSeparisnogn 2 2001818 i n a rrea rs a nd 95% i n a dva nc e Interest rates are in the region of 3.99%-5.59%, with most lenders offering interest only during the build period (typically one-two years), where you only pay interest on the mortgage funds drawn down. When your new home is complete, you can switch onto one of your lender’s standard residential mortgage deals, which will have a lower interest rate, saving you money. Around 75% of all self-build mortgages are exclusively available through BuildStore, with building societies the main source of lending. For many high street lenders, the idea of funding something that is yet to be built is too risky. Having said that, last year saw Virgin Money launch two mortgages exclusively with BuildStore for custom builders, the fi rst high street lender to enter the sector. Other borrowing options If you have enough equity in your current home or own it outright, you could remortgage or secure a bridging loan to pay for the plot, fund your build costs or both. Then when your new home is fi nished, you can sell your old one to pay off the loan. This way you can stay in your current home during the build and avoid the upheaval of moving, living on-site or renting during the build. When it comes to funding your self-build, it’s important to speak with an expert mortgage adviser like BuildStore, who can look at your fi nancial circumstances and build requirements to recommend and tailor a borrowing solution to suit you and your new home. www.buildstore.co.uk Before you apply for funding, here’s our top tips for getting prepared! • Discuss your borrowing options with a specialist mortgage adviser • Work out your budget and costs early on • Make sure your chosen construction method is mortgagable • Have a clear and realistic build cost breakdown • Check your credit score before the lender does • Clear any credit cards and overdrafts where possible • Make sure your bank statements show a responsible spending pattern Financing your build BuildStore


Your Build - Spring 2018
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