Accelerator Self Build Mortgage

Mortgage Advice

Advice on residential mortgages is now regulated and Benfield ATT are unable to provide advice or recommendations on mortgages. Buildstore understand Timber Frame self-build mortgages, and you may find the following information provided by them of interest...

The main difference between a self build mortgage and a house purchase mortgage is with that a self build mortgage money is released in stages as the build progresses, rather than as a single amount.

Some lenders will lend you money to purchase land, typically 75% of the purchase price or value, whichever is lowest. After this, the money for the build is released in a series of stages. These can be fixed or flexible depending on the lender but usually there are five. During the build you can borrow typically 75% of the cost of the value of the house as the project progresses, depending on the chosen lender.

There are two methods by which the money can be released during the build – at the end of each stage or at the start of each stage (known as arrears stage payments and advance stage payments, respectively.)

In the arrears stage payment method, the money for that stage is released after the stage has been completed and a valuer has visited the site. This can cause some self builders to have cash flow difficulties. The advance stage payment method was developed by BuildStore. With it the money required for that stage is released at the start of the stage before work starts.

This advance payment mortgage has become very popular as it gives positive cash flow during the build and the high percentage lending of 95% of the cost of the build under BuildStore’s Accelerator Self Build Mortgage makes it is easier to stay in your current house while the build progresses.

Speed up your build with the Accelerator Self Build Mortgage! Building your own home is faster, cheaper and less hassle with the award winning Accelerator Self Build Mortgage. No other mortgage or finance package so precisely meets the needs of self builders and renovators. You get the funds you need ahead of every stage of the build so you enjoy positive cash flow from start to finish and because you can borrow up to 95% of the costs of land and 95% of the costs of the build you can stay in your own house during the build of your new one.

The key benefits of the Accelerator Self Build Mortgage are

Key Features Up to 95% of land purchase/valuation and Timber Frame Kit or Traditional Build Up to 95% of build costs Stage payments released in advance Access to all the lender's products Flexible underwriting

Benefits No Bridging required Removes cash flow problems Speeds up building project Ability to remain in existing home during the self build construction Ability to pay for Timber Frame Kit in advance of delivery