A guide to financing your dream home with a self build mortgage. 


If you want to make your self build dream a reality, you’ll need finance in place. Take a look at what a self build mortgage consists of, and how they differ from the traditional bricks-and-mortar mortgage we’re more used to…

new build house in progress with scaffolding

Image: Hanley Economic Group

Financing your dream

If you’re lucky enough to be able to finance your own grand design independently, then you won’t need to organise a mortgage of any kind, but for many people, the dream of designing and building your own home is made much more attainable by self-build mortgages.

With a shortfall of new, desirable housing, more and more people want to build a home of their own, and creative ways of financing it are the key to opening that door.

early stage of foundations for a new home

Image: Hanley Economic Group

What is a self-build mortgage?

A traditional mortgage is relatively straightforward – money is loaned against a house that already exists. Self-build mortgages require a little more imagination, as they start off with just a plot of land and an idea in somebody’s head.

Previously deemed quite complex and difficult to arrange, self-build mortgages are an increasingly attractive option as they’ve become simpler and more streamlined, with specialist lenders such as Hanley Economic Building Society pioneering a better way of doing things. Put simply, it’s a mortgage built around you.

concrete foundations for new house

Image: Hanley Economic Group

How does a self-build mortgage differ from a traditional mortgage?

One key difference is that you’ll have to provide different information. Rather than a mortgage assessor going to look at the house you plan to buy, you’ll have to submit paperwork including planning permission, costings, warranty and building plans. But you’ll be doing this with experts who know what they’re looking at.

The finance is structured differently too, with staged payments to help keep control of costs and with an awareness that you need to pay suppliers and tradesmen. It’s also possible to have an interest-free mortgage during the building of the house, which helps to control costs and improve your cashflow when you most need it.

interior of new build house in progress

Image: Hanley Economic Group

What else do I need to know?

It’s become easier than ever to find out about and arrange a self-build mortgage. Hanley work directly with self-builders, making the process smoother and more glitch-free. They’ll guide you through the process and can advise on contingency funds and whether or not you should use a project manager.

new build home with scaffolding on exterior

Image: Hanley Economic Group

If you want to know more now, they have a handy self-build guide available for free download, as well as useful costings forms and more. It’s one step closer to realising your dream.

Note: Your home may be repossessed if you do not keep up repayments on your mortgage.
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