Mortgages For plot Buyers

There are a number of excellent mortgage brokers able to assist buyers in securing a self build or custom build mortgage. These specialist advisers will recommend and tailor a borrowing solution to suit your financial circumstances, build and payment schedule.

Self Build & Custom Build Mortgages

As your home will be built and paid for in stages, rather than borrowing funds using a traditional mortgage, a self build or custom build mortgage which releases funds in stages throughout the build rather than a single amount, is more suitable.

There are two types of mortgage available. They are defined by how funds are released during the build, where your stage payments are either subject to an increase in the value of works completed or guaranteed based on your costs.

A valuation based stage payment mortgage releases funds after each stage of works are complete, where a valuation has taken place showing an uplift in value. This borrowing option may not suit your build payment terms if you’ve chosen a timber frame construction.

A cost based stage payment mortgage provides guaranteed payments based on your build costs either before or after each build stage, depending on your build payment schedule.

The brokers we recommend offer specialist knowledge and expertise, competitive interest rates, exclusive products and lenders, interest only during the build, guaranteed cost based stage payments and the ability to stay in your current home until your new one is complete.

Cost Based Stage Payments

Your build payment schedule can influence your choice of mortgage, and often dictate the need for guaranteed cost based stage payments. Especially if you’ve chosen a timber frame construction for your new home, as it is likely that your supplier will need payment in full before the structure is delivered onsite.

For more information and expert advice on how to fund your self or custom build please contact The Land Agency and we will put you in touch with a specialist, independent mortgage broker.