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Mortgage360 are here to help you make the right choice.

Here at Mortgage360 we pride ourselves on offering tailored advice, coupled with great service. We are mortgage experts, so you can rest assured that you are in safe hands when searching for your new mortgage, whatever your situation may be.

Key Benefits

We are committed to guiding you through one of life's most significant financial decisions.

When it comes to securing the right mortgage, our expert team is here to ensure that you make informed choices tailored to your unique needs.

Self build mortgages can be more difficult to secure – we’ll help you access the right lenders.
We’ll search out the right product for you, from mainstream providers through to specialist lenders.
We can put together a package including insurance services to match your individual requirements.

Have you always dreamed of building your own home? Creating a property that matches your individual requirements and your plans and vision for the future?

There are some very practical advantages too. You can save a lot of money, and you can also create a home which is eco-friendly and costs less to run.

Maybe your plans are already in hand, and you’re thinking about how you will finance the project. Self build mortgages are a real thing, but they can be more difficult to find and secure.

Advantages of working with a specialist Self-Build mortgage broker

It will be more complex to secure the right mortgage deal on a self build property, so it’s definitely worth consulting a specialist mortgage broker.

An specialist mortgage advisor will have access to comprehensive panel of mortgage products and schemes. They’ll be able to work for you, securing the right deal to match your personal circumstances.

Mortgage brokers are qualified professionals, regulated by a defined code of conduct. You can be sure your advisor will have your best interests at heart.

In addition, if you’re self-employed or have a bad credit history, your broker will be able to access specialist lenders on your behalf, aside from the traditional high street or mainstream providers

Specialist mortgage brokers can help you with a broader range of financial services such as life insurance and income protection, putting together a portfolio to match your needs. Talk to us at Mortgage360 – we’ll put together a package designed around your needs and provide you with specialised self-build mortgage advice to suit your budget.

Types of mortgages available for Self-Build projects

A self-build mortgage is different from a conventional mortgage. Rather than paying a lump sum to cover the entire cost of a property, they release funds in stages, essentially creating the cash flow you need to finance the building of your property in terms of materials and labour.

Broadly speaking, there are two types of self-build mortgages

– Advance

An advance self-build mortgage is designed for people who don’t have cash in hand to finance the project. This type of mortgage releases funds at the start of each building phase.

Some mortgage lenders will only lend on the build, rather than the land. Interest rates on advance mortgages are typically higher than other types of mortgages.

– Arrears

If, on the other hand, you do have your own funding for some of your self-build costs, then the arrears mortgage will probably be a better route for you. Arrears mortgages release funds after the completion of each stage, so you fund the stage and then receive the money afterwards.

– Other Options

If you own a home already and have sufficient equity in it, then your other options are to remortgage or take out a bridging loan to fund your self-build. Once the project is complete, you can sell the original property and pay this off. Interest rates on bridging loans make this a more expensive option, and bridging finance will usually have a maximum twelve-month term, so you have to be confident you can complete your build within this space of time.

Advantages of Self-Build Mortgages

Self-build gives you a unique opportunity to create your own home, designed around your needs, exactly how and where you want it to be.

It will almost certainly cost you less than buying a comparable property, and will probably be significantly more valuable than the total of the money you have spent on land, labour, building materials and professional fees.

You will only pay stamp duty on the cost of the plot of land, not on the remainder of your self-build costs, and even then only if the plot of land costs more than £250,000 (until 31 March 2025).

Disadvantages of Self-Build Mortgages

It will be more expensive than a conventional residential mortgage, although you will probably be borrowing less in total than you would if buying a comparable existing property. Self-build mortgages typically attract higher interest rates to mitigate what is perceived as a higher level of risk, as well as higher arrangement fees.

You will also have to find a larger deposit for a self-build mortgage, probably around 25% of the total projected cost, but for some lenders, this may be higher.

Money will only be released in stages (or tranches) to protect the lender in the event of issues arising.

You will need to provide your lender with full documentation on the proposed self-build, including floorplans, detailed costings, site insurance, a suitable warranty and project completion timelines.

The funding stages

Exactly how and when funds are released will vary from lender to lender. Funding is released in stages to minimise risk for the lender. If you fail to complete the project for any reason, there will be tangible assets to cover the funds already advanced.

Build stages usually need to be signed off by a surveyor. Typical staging (for brick/block and timber frame systems) is as follows;

  • Funds released for land purchase
  • At substructure stage (foundations)
  • Built to eaves height
  • Roofed (wind and watertight)
  • First fix (structural work)
  • Second fix (finishing work)
  • Completion

A contingency fund

Don’t expect everything to run smoothly! Unexpected issues and delays will almost certainly crop up, so it’s advisable to allow for 15% of your total build costs as a contingency fund to avoid having to secure extra funding, with additional costs.

Applying for a Self-Build Mortgage

In addition to all the standard mortgage application requirements, your self-build mortgage will require a number of additional aspects, including;

  • Your ability to demonstrate to lenders that your project is feasible, carefully planned and professionally managed
  • Detailed projections covering costs and timelines
  • Planning permission
  • Documentation including floorplans etc

A self-build mortgage can be a great tool for helping you achieve your dream home at an affordable cost.

Remember you will need to live somewhere while the build is being completed, and the costs involved here will be taken into account when your mortgage lender is assessing your overall affordability.

What deposit is required for a self-build mortgage?

The deposit will typically be larger than for a standard residential mortgage. There may be separate considerations for buying the land and actually building the property.

As an example, a 75% LTV (Loan to Value) might be set on the land purchase, and an 85% LTV on the build costs.

A typical deposit would be around 25% of the total projected cost. This figure may also be impacted by your assessed affordability and credit history.

Assessing Your Financial Circumstances and Credit History

Everyone seeking a mortgage needs to satisfy the lender’s affordability checks. Lenders will look closely at your income, outgoings and any existing debts, as well as your credit history.

Specialist lenders may be more flexible in terms of allowing bonuses and commissions to be taken into account.

Assessing the Building Project and Labour Costs

It’s possible for building costs to quickly spiral out of control, so you’ll need to set a budget by working out the proposed costs.

Research your costs carefully – they should include everything from planning permission to architects and other professional fees. Remember your final fixtures and fittings.

Assess your finances carefully and decide whether this financial commitment is for you. Remember you’ll need to live somewhere while you build!

Don’t just go for the cheapest quotes, look for testimonials. Always pay in instalments.

Calculating Affordability and Gaining Approval for Funds

Alongside the mandatory affordability checks, gaining approval for a self-build mortgage will also be dependent upon your design and construction methods being compliant with Building Regulations. Some lenders may be unwilling to lend on some construction systems.

Some lenders will require the build costs to be calculated by a qualified quantity surveyor, whilst others will work on a fixed build cost budget.

Other requirements will include;

  • Detailed planning permission
  • Architects drawings
  • Insurance and structural warranties
  • Energy performance calculations (SAP)
  • A valuation of the proposed self-build

Why Choose Mortgage360 as your Self-Build Mortgage Broker?

At Mortgage360, we understand the trials and tribulations of building your own home. We know which lenders offer competitive deals. We’ll get to know you and your personal circumstances in order to advise you on the best route forward to secure a mortgage deal for your dream self build home! Contact us to start the ball rolling.

Self Build Mortgage Broker

Here at Mortgage360, we can provide expert advice on all your mortgage and insurance needs.

Whether you’re ready to get started on your journey now, or you’d just like a no obligation consultation, we’d love to hear from you…

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There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, however we estimate this to be between £200 and £600.


See what our clients are saying....

Zoe Cameron
September 28, 2023

Great service from Mortgage360, following a recommendation from my financial advisor. They efficiently went through our criteria and found the best mortgage to suit our needs. Their comms are great, they kept me fully informed throughout. Thank you Gavin and Matt.

Barnaby Fox
September 14, 2023

Gavin/the team was extremely efficient and communicative through the whole process, resulting in getting a mortgage at a great rate.

Richard Fryer
June 30, 2023

After working with Matt from Mortgage 360 previously on our first mortgage he shows excellent customer service and caters for the needs of the client. Couldn’t be happier working with Mortgage 360 especially in the current climate as the business answers all the questions asked and takes the customers best interests into account.

Samia Umarq
May 15, 2023

Gav arranged my mortgage he was great throughout the process keeping informed, very friendly and knowledgeable highly recommend him.

R Virk
R Virk
May 10, 2023

Excellent service from Gavin Watson

I contacted Gavin Watson, as I was needing to remortgage my property quickly, as my previous fixed arrangement was due to end within weeks. Therefore, there was a sense of urgency on my part. I need not have worried as Gavin was very supportive and professional from the first contact to the completion of the new mortgage arrangement. He took the time to listen and explain all the options I had and guidance on the best option for my particular circumstance. Gavin ensured the remortgage was completed effectively and efficiently, not to mention, well within the timescale. If you are looking for a professional, who has the best interests at heart for his clients, then look no further. I highly recommend Gavin Watson, if you are in the market for a mortgage. Thank you so much Gavin for such an excellent service.

Angela Holder
Angela Holder
May 6, 2023

Great service from Matt for the second…

Great service from Matt for the second time. He was fast to give advice and extremely efficient in obtaining the best possible mortgage. The whole process was smooth and stress free.

Aiden palmer
Aiden palmer
May 4, 2023

Brilliant service!

Brilliant service!! Gavin has helped us so much to get our mortgage and we couldn’t have done it without him. We will definitely use him again in the future. Thankyou so much!

GALE Boyes
April 21, 2023

Absolutely amazing service from Matt can't thank him enough for securing our mortgage for our forever home considering our past credit history. Thankyou again Matt at pulsar. 100% recommend.

Jamie Chan
Jamie Chan
April 4, 2023

Matt continues to provide exceptional…

Matt continues to provide exceptional client services, and is very diligent in searching the market for the best deal. Highly recommended. Thanks, Jamie

Sue Alexander
Sue Alexander
March 16, 2023

I recommend Pulsar to everyone

I would recommend Pulsar to everyone. Gavin has been amazing helping me to buy my council house. As this is my first home purchase and I’m not young!! He made everything easy to understand and made the mortgage mind field easier to navigate, getting me the best deal. I know that ongoing support is there if and when I need it. Thank you Gavin x

David Ian
David Ian
March 3, 2023

Great service, friendly, prompt and professional personal recommendation led us to…

A personal recommendation led us to Pulsar F. S. Matthew Illingsworth was very helpful, prompt and supportive through the process of obtaining a bridging loan to purchase. The documentation explained our options and laid out the process clearly. Would full recommend to others.

Amanda Underhill
Amanda Underhill
February 27, 2023

Remortgage recommendation

Gavin has been absolutely amazing dealing with my remortgage. Professional but personable from the start, he has been able to secure the right mortgage for me and supported me through the process giving impartial advice and a range of options for me to consider. He’s provided timely support, and has been contactable to answer questions as needed - this has been exactly what I needed during a stressful time remortgaging during divorce negotiations. I’d highly recommend Pulsar Financial Services!

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