Mortgages · Self Build
Financing a home you build yourself.
Self build mortgages release funds in stages as your build progresses, rather than as a single lump sum at completion — matched to how construction finance actually needs to work. They're a genuinely different product from a standard mortgage, with their own specialist lenders.
How self build lending actually works
Rather than releasing the full loan amount upfront, self build mortgages typically release funds in stages as the build progresses — commonly at foundation, wall-plate (walls up to roof height), roofed/watertight, first fix and completion. Some lenders pay in arrears (after each stage is completed and valued), while others pay in advance (before each stage, helping cash flow but requiring more scrutiny of the build plan) — this distinction matters significantly for how much of your own money you need available during the build.
Once the build is complete, most self build mortgages convert to a standard residential mortgage, either with the same lender or via a remortgage — worth planning for from the outset rather than leaving until the build finishes.
Who this is for
- Building a new home on land you own or are buying
- Renovating or converting an existing structure extensively
- Custom-build projects on a serviced plot
- Buyers who already have planning permission or are close to it
- Those needing to understand stage payments and cash flow
- Anyone comparing arrears vs. advance stage-payment structures
How it works
Tell us about the project
Land or plot status, planning permission, build cost and your own funds available.
Understand stage payments
Most lenders release funds at set stages (foundations, wall-plate, roofed, first fix, completion) — we explain how this affects your cash flow.
Lender matching
Self build lending is a specialist market — we identify lenders suited to your specific project.
Application through to completion
Including any conversion to a standard mortgage once the build completes.
Common questions
- Most self-build lenders require full planning permission to be in place before they will lend. Some will consider an application with outline planning permission where full planning is expected imminently, though this is less common. Applying before any planning has been granted is generally not possible with mainstream self-build lenders.
- Most lenders will advance up to 75-85% of the total build cost or end value, whichever is lower. The amount available at each stage depends on whether the lender releases funds in advance or arrears. You typically need to fund a proportion of each stage from your own resources before the next release is triggered.
- An arrears-based mortgage releases funds after each build stage is independently valued and certified as complete. An advance-based mortgage releases funds before each stage, which helps with cash flow during the build but requires more documentation and forward assessment. Advance structures are less common but can be important if you have limited capital available between each inspection.
- Once the build is complete and a completion certificate is issued, most self-build mortgages either convert to a standard residential mortgage with the same lender or you remortgage elsewhere. Planning this conversion from the outset — including which lenders offer strong long-term rates post-build — is part of how we structure the overall finance.
Do I need planning permission before applying for a self-build mortgage?
How much can I borrow for a self-build?
What is the difference between advance and arrears stage payments?
What happens at the end of a self-build mortgage?
Reviewed by Yazdaan Hussain · CeMAP qualified · LLB
21 August 2026
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loans secured upon it.