Self Build Mortgages
As your self build home will be built and paid for in stages, rather than borrowing funds using a traditional mortgage, a self build mortgage which releases funds in stages throughout the build rather than a single amount, is more suitable.
There are two types of self build mortgage. They are defined by how funds are released during the build, where your stage payments are either subject to an increase in the value of works completed or guaranteed based on your costs.
A valuation based stage payment mortgage releases funds after each stage of works are complete, where a valuation has taken place showing an uplift in value. This borrowing option may not suit your build payment terms if you’ve chosen a timber frame construction.
The BuildStore Cost Based Stage Payment Mortgage provides guaranteed payments based on your build costs either before or after each build stage, depending on your build payment schedule.
Cost Based Stage Payments
Your build payment schedule can influence your choice of mortgage, and often dictate the need for guaranteed cost based stage payments. Especially if you’ve chosen a timber frame construction for your new home, as it’s likely that your supplier will need payment in full before the structure is delivered onsite.
The BuildStore cost based stage payment mortgage is ideally suited to timber frame builds, as your stage payments can be released before each build stage and are guaranteed based on your costs, so you’ll have the cash you need to meet your supplier’s payment terms.