Self Build & Renovation

Self Build Mortgages — simple staged funding

We arrange self build mortgages and compare multiple lenders to get the right stage-payment plan for your project. Pay interest-only on funds drawn during the build, then switch to a normal mortgage when finished.

Up to 95% Loan to Cost (LTC) cost-based (stages can be guaranteed)
Up to 85% Loan to Value (LTV) valuation-based (paid in arrears)

How the funding works

  • You buy the plot and build in stages (Land Purchase → Footings & Foundations → Brickwork (Wall Plate Level) → Wind & Watertight → First Fix → Second Fix/Completion).
  • The lender releases money in stages to match the build.
  • You only pay interest on the money you’ve drawn down.
  • On completion, you move to a standard residential mortgage.

Two simple options

Option What it means Max leverage (typical)
Cost-based Stages based on your agreed build costs. Stages can be guaranteed, and can be paid in advance or arrears to help cashflow. Up to 95% Loan-to-Cost
Valuation-based Money released after each stage once a valuation shows the property has increased in value. Up to 85% LTV

The 3-step process

  1. Plan & budget: send drawings/spec and a rough cost breakdown.
  2. Compare lenders: we match your cashflow to the right product and stage schedule.
  3. Build with certainty: funds released at each stage; switch to a normal deal at the end.

We work with multiple lenders and will show you the pros/cons of each route for your build method (brick & block, timber frame, modular, renovation).

Worked example

Project: £300,000 land + £350,000 build costs = £650,000 total costs. Estimated value on completion (GDV): £1,000,000.

Land £300,000
Build £350,000
GDV £1,000,000

Illustrative funding (cost-based vs valuation-based)

Route How it would look Indicative numbers
Cost-based Stages follow your cost schedule. Can be paid in advance or arrears, giving tight cashflow control. Up to 95% LTC on land & build:
• Day-1 land up to £285,000 (95% of £300,000)
• Build stages up to £332,500 (95% of £350,000)
• Total facility up to £617,500 (~5% equity ≈ £32,500)
Valuation-based (paid in arrears) Funds released after each stage once a valuation confirms uplift. Strong overall leverage, but you’ll need more cash early on. Up to 85% LTV at each stage (subject to valuation):
• Day-1 land up to £255,000 (85% of £300,000) → land equity £45,000
• Overall headroom at completion up to £850,000 (85% of £1,000,000)*
*Facility sized by stage values and costs; early stages paid in arrears.

Figures are illustrative only and depend on lender criteria, affordability and valuation. Interest is typically interest-only during the build on funds drawn.