Whilst there are financial gains, be aware that self-build mortgage rates are often higher than those of a standard mortgage. This is because self-build mortgages are not often available from larger lenders.
Deposits for self-build mortgages are often high. You usually need a deposit of at least 25% and it can be as high as 50%. You are therefore likely to need substantial savings in order to apply for a self-build mortgage, especially for arrears stage payment.
Another important thing to consider is where you will live whilst your new property is being built. If you plan to stay in your current home whilst building the new property, re-mortgaging that home could be a possibility and may help fund your self-build. However, this is only possible if you have a significant amount of equity on your current home and you must be aware of the risks involved before deciding to re-mortgage your current home.
Choosing to build your own home is an exciting opportunity which could save you money long term. It’s sound advice to be aware of what is available to you before deciding to take out a self-build mortgage.