SELF BUILD MORTGAGES
A self-build mortgage is specifically designed for those who want to construct their property from the ground up. It can also be used to renovate / extend your property. At Watts Mortgage and Wealth Management Ltd, our experienced, independent mortgage advisers help you access the most competitive self-build mortgage deals on the market.
Unlike traditional mortgages, a self-build mortgage releases funds in stages, helping you manage costs throughout the build process. As a whole of market broker, we can search across a wide range of lenders to find the best solution tailored to your project and financial situation.
A self-build mortgage is a specialist loan that gives you money in instalments, typically aligned with the stages of your build (e.g., foundations, walls, roof, and completion). This ensures funds are available when you need them most, without overstretching your budget.
There are two main types:
- Arrears Stage Payments – Money is released after each stage is completed.
- Advance Stage Payments – Money is released before each stage begins (ideal for those with limited upfront funds).
- Access to funds throughout your project
- Potential cost savings over buying a pre-built home
- Flexible mortgage structures
- Potential for increased property value on completion
It’s important to remember that interest rates for a self-build mortgage are typically higher, but you should be able to move to a mortgage with a lower rate once the build has finished. The team at Watts can help you understand the process from beginning to end, and help you with various aspects of your self-build mortgage along the way.
Every self build project has identifiable stages from the initial digging of the foundations to the final fix and at each stage the value of the build increases. The following chart shows the typical stages in a traditional brick & block construction.
Stage Brick & Block
- Purchase of land
- Preliminary costs & foundations
- Wall plate level
- Wind & watertight
- First fix & plastering
- Second fix to completion
- Get professional advice early
Speak to a specialist mortgage adviser as early as possible – ideally before purchasing your plot of land. - Understand the costs
Factor in all potential expenses: land, materials, labour, contingency, and professional fees (e.g., architects, surveyors). - Secure detailed planning permission
Full planning permission strengthens your application and speeds up approval. - Stay organised and transparent
Keep detailed records, timelines, and receipts. Lenders may ask for evidence at each stage. - Budget for unexpected delays
Always have a contingency fund in case of delays, price increases, or unforeseen issues.
To find out more about how to get started with a self-build mortgage, talk to one of our independent advisers today for more advice, by calling 01270 620555 or filling in the enquiry form. We’d be delighted to assist you.
MAKE AN ENQUIRY
If you’re looking for mortgage advice, contact Watts IFA today. Our expert team can help you secure the best mortgage based on your contracting status and financial situation.
Amy Parkin
Senior Mortgage Adviser
“I have helped many clients over the years achieve their dream of building their own home. We’ve all seen Grand Designs! The idea of planning something from scratch can be an exciting proposition but at the same time, it can be complicated and quite daunting.
The advisers here at Watts have years of experience and we’d be delighted to guide you through the process.”
With our extensive experience and access to a vast lender network, Watts Mortgage & Wealth Management Ltd is the ideal partner for those seeking a tailored mortgage solution. Contact us today, and let our dedicated advisers guide you through the process.
AWARDS AND ACHIEVEMENTS
Self-Build mortgage FAQs
Most UK residents can apply, though lenders will require detailed plans, costings, and often planning permission before approval.
Typically, up to 75-85% of your build costs or completed property value, depending on your financial profile and the lender.
Yes, most lenders require full planning permission and detailed build plans.
It’s possible, but fewer lenders offer options for poor credit. Our whole-of-market access helps us find specialist lenders if needed.
Payments are released in agreed stages – either in arrears (after work is completed) or in advance (before work starts).
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Our friendly, knowledgeable and experienced team are here to help find the right mortgage and life insurance for you. We have helped thousands of clients, over 30 years buy their dream home and ensure their family is protected.
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I just wanted to say a massive thank you for your assistance in my purchase. I would like to place on record my appreciation of the professionalism and tenacity of Emma. She has kept me fully updated in terms of progress and answered all of my questions in a timely manner. Great service and hope we can do business again in the future.
A. Henshall
