Are you looking to knock down your current property and build your dream home from scratch? It’s an aspiration held by many, but the logistics of making it happen can be confusing. A regular residential mortgage can’t be used for this type of project, but if you plan to live in the property on completion, development finance isn’t the right route, either. The answer is a self-build mortgage, a tailored product which has become increasingly popular in recent years.
If you’d like to know more about self-build mortgages and why they’ve become so popular, check out our article on the topic here. But if you already know you’re ready to take the plunge and rebuild your home, our product of the week comes from a lender with a specialist self-build offering.
This product can be used to purchase land and build from scratch. However, if you have a current property and are looking to knock this down and rebuild from the ground up, this lender is unique in that they are prepared to lend against a property’s current value, and can then increase this as the project progresses. This is therefore a good option if you have a high-value property but are looking to rebuild this completely to significantly increase its value.
- Self-build mortgage
- 4.19% fixed rate
- 2-year term
- Interest only basis
This product is offered at a rate of 4.19% over a 2-year term, on an interest-only basis. By this time, your project should be complete, and you can look to refinance onto a residential rate, enabling you to pay back the self-build mortgage facility. We have assisted clients with this process on many occasions and will be happy to help you again when the time comes.
Typically, this lender will only lend in the South East of England: other applications are on a case-by-case basis, although we also have access to regional lenders and can assist you with developments elsewhere.