BuildStore's specialist mortgage advisers will recommend and tailor borrowing solutions to your financial circumstances, design and build specifications, and payment schedule. They fully understand the products and systems SIPS@Clays supply along with the stage payments you will require to support the progression of your SIPs home.
BuildStore also understand the complex and specialist experience required when financing self build houses using SIPs. They have built solid relationships with lenders and created more than 60 exclusive mortgages, designed specifically to solve the common issues faced by individual homebuilders.
These unique funding solutions set BuildStore apart from other mortgage brokers, and this allows them to help many customers who otherwise may not have had the chance to build their dream homes.
How do self build mortgages work?
Self build homes are built and paid for in stages, and you’re unlikely to be able to draw enough from the value of your plot alone to cover all of your costs. Self build mortgages therefore release funds in stages as work progresses, rather than as a single payment.
There are two types of self build mortgage: valuation-based and cost-based. The two types of deal have very different features so it’s really important that you understand how any mortgage you choose will work - particularly how the lender decides how much money they’ll give you at each stage of your build.
Valuation Based Mortgages
Valuation-based stage payment mortgages release funds after each stage of the building process is completed and a lender’s valuation shows an uplift in value. This means you won’t know how much money you’ll get after you’ve completed each stage so there is a real risk you won’t get what you need, which could bring your build to a standstill.
These mortgages may be more suitable for traditional building methods, where the build costs are more evenly spread across the build, where you already own your plot so already have some in built-in value or where you have more cash of your own available to put into your build.
Cost Based Mortgages
Cost-based stage payment mortgages provide guaranteed stage payments based on your build costs. Funds can either be released before or after each build stage, depending on your payment schedule. There are no valuations during the build, so stage releases can be agreed as part of your mortgage application. This type of mortgage is exclusively available from BuildStore and works particularly well with a SIPS@Clays build as you can get money from the lender towards the cost of your SIPs home before it’s even on site.
How much can you borrow?
How much you can borrow depends on your financial circumstances. Like any mortgage, lenders will assess your income and outgoings to calculate what you can afford.
For a valuation-based self build mortgage, the money your lender will release is typically restricted to 80% of their assessment of the value of your site at any time - you won’t know how much is available to you until you ask for more money.
With BuildStore’s higher lending percentages, you could borrow up to 95% of your costs, (100% if you already own your plot) with a maximum of up to 90% of the expected end value of your home. What’s more, you’ll be told as part of your mortgage application how much you’ll receive at each stage of your build- guaranteed.
The BuildStore Difference
- Specialist knowledge and expertise
- Competitive interest rates
- Exclusive products and lenders
- Interest only payments during the build
- Guaranteed cost based stage payments to coincide with your costs
- Ability to stay in your current home until your new one is complete
- Tailored cash flow to suit your build and payment schedule
- Borrow up to 95% of your land and build costs
For more information and expert advice on how to fund your timber frame system, visit BuildStore Mortage Services or call 0345 223 4888 to enquire.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £395.
BuildStore Mortgage Services Limited is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.
BuildStore Mortgage Services Limited. Registered Office: 8 Houstoun Interchange Business Park, Livingston, EH54 5DW. Registered in Scotland Number: SC448916.
Homebuilding Finance with BuildStore
When it comes to funding your home, we recommend BuildStore Mortgage Services who have a proven track record in working with our construction system.
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