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Financing your Project
Build inFlexibility
Self Build Finance has been transformed over the past few years, with increased flexibility enabling more people to build their own homes. In the early days of self build, people usually had to sell their existing house to release the necessary funds before embarking on a project. They would then have to pay for furniture storage and rental accommodation costs, move their family into a caravan on site or lodge with relatives during the build. Thankfully, these stressful options are now not the only way to pursue a self build project. Today's self builders have a choice of different packages, all offered by major High Street lenders and tailored to meet your own personal requirements. Crucially, one major change has opened up self build, the introduction of accelerator or advance mortgages. Prior to these, self build mortgages, which are released in stages as the build progresses, were paid in arrears upon completion of a build level. These mortgages release the money to you in advance of the stage - enabling you to pay your sub-contractors on time thus minimising delays and providing greater security. Unlike traditional self build mortgages which require borrowers to come up with a substantial deposit they can provide up to 95% of both the build and the land cost. With this greater cash flow flexibility self builders often find it is both more convenient and financially astute to stay in their own homes throughout the build. There are also products available for those self builders who require short term building finance to fund the building of their new home but who will not require long term borrowing on it. Accelerator/Advance Features
There are two main providers of accelerator/advance mortgages:
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