Self Build Mortgages

The Society’s Self Build Mortgages are only available where the self-build project is being undertaken in Wales or the Welsh Borders (postcodes SY, WR, GL, HR & BS). Other areas may be considered on a case-by-case basis so please call us to discuss.

 
Self Build Mortgages-1
Why choose a Self-Build Mortgage with Swansea Building Society?

Our Self-Build Mortgages are for individuals planning to build their own home in Wales. Our Mortgage experts can offer you help and advice all the way through your application.

  • Helps to eliminate cash flow issues
  • Provides staged financing to meet your obligations
  • Specialist assistance and flexible underwriting
  • Payments are released in arrears
  • Where land already owned / being gifted, monies can be raised using value of land to assist with build costs
Is Self-Build Right for You?

Looking for the ideal home for you and your family, in the perfect location, and at the right price is usually a prolonged and distressing venture.

For many, having the ability to build your own home is the dream. This way you can customise it to your immediate and future needs rather than having to continuously remodel it over the years.

For those of you who choose to venture down the self-build path of owning a property, then you probably will need a self-build mortgage to fund your self-build home.

When opting to take self-build route, there are typically three approaches to accomplish this goal, or a blend of all three.

Option 1

You could decide to do it all yourself, specifically if you have some building and construction experience, and hire trades people during this process whenever it is required.

Option 2

You could alternatively merely manage the project and employ an architect, surveyor, and construction company, who are going to work for you to build your home.

Option 3

If you prefer to be entirely hands-off, you could appoint a contractor to manage the project, and hire the appropriate laborers to execute the project, from start to finish. However this approach is likely to end up being more expensive.

What Is a Self-Build Mortgage?

Self-build mortgages as the name suggests are mortgages that fund your self-build project.

Self-build mortgages allow you to borrow cash to initially purchase the land (where applicable), then the funds are released in stages so you're able to pay for the build as it advances as opposed to a single lump sum at the beginning. Generally, you'll receive additional funds as soon as the foundations have been laid, and again when your home has been built up to the stage where the roof has to be installed.

Further payments are available when the roof has been erected and sealed, when the internal walls are plastered, and finally when the whole house has been completed.

You will need to have a minimum 30% deposit to contribute towards the total cost of the project. (You may be able to raise funds on the land if already owned / being gifted to help towards this.)

How does a self-build mortgages work?

As part of your application, you need to supply a plan of how you intend to build your property. This must be made in a way that provides a sense of how the project will be managed and demonstrate a process that we can have confidence in to release funding.

At each phase of build a self-build mortgage payment is sent to you, and a property valuer will normally visit the building site to confirm the work has been completed satisfactorily and is on course with the project plan.

The build will need to be supervised throughout either by a qualified Architect or Building warranty firm and at each stage release, they will need to provide confirmation of the work undertaken.

Mortgage Interest Rates

(click on the mortgage product name for more information)

Residential Purchase/Remortgage

Type

Maximum Loan to Value of Property (LTV)

Variable Interest Rate

The overall cost for comparison is*

APRC based on a loan value of:

Self Build Mortgage (SB2SVR)

Standard Variable Rate (SVR) for months 1-24 and from month 25, 1.05% discount off Standard variable Rate (SVR) for remainder of term of loan

70%

4.85% month 1-24

3.80% month 25 on

4.90% 
month 1-24
3.80%
month 25 on
Overall APRC = 4.10% 

£180,000

Local Mortgage Manager

Please contact your local mortgage manager today for more information.

Alternatively, please complete the call me back page and one of our mortgage managers will contact you.

Self Build Mortgages

We specialise in self build mortgages, purchasing an existing property to renovate or more rural projects such as barn conversions. Premises with an agricultural connection or "Section 106" restrictions can also be considered.

If you're preparing to build your own home rather than buying an existing one, a traditional mortgage almost certainly won't be suitable.

Presuming you have found, been gifted or already own the ideal plot of land and have been granted planning permission to build a property, it is advisable to finance this endeavour with a self build mortgage.

What is a self build mortgage?

Most varieties of mortgages are structured in order that you, the purchaser has access to all the funds at the same time, to enable you to pay for the property.

A self build mortgage operates in a different way, because the building society's usual principal security does not fully exist yet. Discharging all the funding at once would consequently expose the society to adverse risk.

A self build loan allows us to release the money in staged instalments, designed to finance each stage of construction / renovation.

The Society releases the funds in arrears. This is when a phase of construction is completed and then you make a claim for funding towards this.  

What are the requirements for applying for a Self Build Mortgage?

Along with meeting the Society’s lending criteria, , a Self Build Loan has some other conditions:

  • The applicants must own or upon completion have purchased the land for development which must have full planning permission at time of application.
  • Upon completion, building regulations permission must have been obtained from the local council.

Detailed plans / costings for the build / renovation / conversion including all relevant costs and fees must be supplied at application. Please click here to access our guide to self-build mortgages – link to our self-build guide.

Our self build mortgages are offered for a broad range of self-builders. Regardless of if it’s a skilled DIY build, self-managed through to a contractor managed project, we will consider lending.

When is the money released for a self build loan?

Funds are usually released when you reach one of the following phases of build:

  • Purchase of land (with planning permission)
  • Laying of the foundations
  • The roof is wind and watertight
  • First fix – plastering and second fix - electrics and plumbing
  • Certified as finished by a surveyor

Contact one of our local mortgage managers to discuss how we can help – contact details here

Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.