Financing For Your Self-Build
With the changes to how mortgages are approved since the economic downturn, it is more important than ever to get your self-build mortgage Agreement in Principle (AIP) as soon as possible. This will drive so many factors including your budget.
Self Build Mortgages
When it comes to self-build mortgages, your lender will release the loan in stages as your new house is completed, up to a certain Loan to Value (LTV) of the total overall cost. In order to secure a loan of this type, Feeling Home’s cash flow forecast and programme will become a fundamental part of the process.
Once your self-build mortgage has been approved, stage payments are usually released as work to the following is completed: plot purchase, foundations, wall plate, weather-tight, first fix and completion. Specialist self-build mortgage provider Build Store Mortgage Services has developed an 'Accelerator' product. This allows payments to be made before these stages are started, removing the need to seek expensive bridging finance.
Click on the image below to take you to the Build Store Mortgage Services website and discover the self-build mortgage rates you could benefit from:
Property Developer Finance
Sometimes the more conventional self-build mortgage lenders are unable to help – perhaps because the affordability criteria does not stack up or the custom-build project does not fit with their processes. In this instance, a property development finance package is often a good solution. These loans are usually tailored towards commercial property developers but a self-builder can also benefit from the more open-minded approach to funding.
Feeling Homes works closely with property development finance broker Gateway Commercial Finance to help self-builders and small property developers who need specialised finance solutions. As the lending criteria for more traditional borrowing has tightened, Gateway Commercial Finance has worked closely with a number of financial institutions and specialist lenders to ensure their developer clients (both residential and commercial) remain able to fund their projects.
Owing to the current economic climate, those lenders still offering property development finance loans are more selective so it is essential you put together a well-structured presentation to help guarantee your project’s chances of success.
To find out how Gateway Commercial Finance can make your development project happen, click on the image below. Contact them directly for further advice and guidance concerning the best route for you and your self-build project.
For more general information on self-build mortgages and how to finance your self-build project get in touch with us today. For a free no-obligation quotation fill in our online form with a few details of your self-build project/enquiry and we will get back to you.