Self-Build Mortgages

Unlike conventional mortgages, self-build finance is structured around construction milestones. Funds are typically released at key stages, such as:

  • Land purchase – Securing the plot before building begins.

  • Pre-construction – Covering initial groundwork, foundations, and planning approvals.

  • Structural completion – Funding walls, roofing, and core infrastructure.

  • Wind and watertight – Doors windows, and roof fitted

  • First fix and plastering - Providing capital for plumbing, electrical work

  • Second fix to completion– interior finishes.

Lenders may offer advance or arrears stage payments, depending on the borrowing arrangement.

How Self-Build Mortgages Work

Key Benefits of Self-Build Mortgages

  • Lower stamp duty – You pay stamp duty only on the land purchase (not the final property value).

  • Tailored repayment structures – Flexibility in mortgage terms to match build timelines.

  • Greater control – Custom-build financing ensures you can design and construct the home to your specifications.

  • Potential cost savings – Building from scratch can be more cost-effective than purchasing a completed home.

Key Considerations for Self-Build Finance

Before securing a self-build mortgage, lenders assess:

  • Planning permission – Proof of approvals for construction.

  • Build cost estimates – Detailed project budgets and contractor costs.

  • Deposit requirements – Typically 20%-40%, depending on the lender.

  • Experience – Some lenders prefer applicants with construction or property development experience.

Regulated vs. Non-Regulated Self-Build Mortgages
Self-build finance falls into two categories:

Regulated Self-Build Mortgages – Owner-Occupied Homes

Regulated self-build loans apply when the property will be your primary residence. These mortgages follow FCA guidelines to ensure consumer protection, offering repayment terms suited to personal homeowners.

Non-Regulated Self-Build Mortgages – Investment & Commercial Projects

Non-regulated self-build mortgages apply when the development is for investment purposes (e.g., resale or rental). These loans are structured differently, often requiring higher deposits or alternative financing routes.

At MSP Financial Solutions, we simplify self-build mortgages, helping clients secure competitive financing to bring their dream home to life. Whether you're constructing a residential property or an investment development, we provide expert guidance every step of the way.

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Get In Touch

Building your own home offers complete control over design, materials, and layout, but securing finance for a self-build project differs from traditional mortgages. Unlike standard residential loans, self-build mortgages release funds aligned with construction progress, ensuring you have the capital needed at each phase of development.

At MSP Financial Solutions, we specialise in self-build mortgages, guiding clients through lender requirements and tailored financing solutions to make their vision a reality.

What our clients have to say

  • Donny from MSP was superb at helping me.

    Donny from MSP was superb at helping me get my initial mortgage as a first time buyer. He spent time guiding me through the process and answering all of my questions.

    When it came time to remortgage I knew I was in safe hands with Donny. He helped explain all the range of different options available and their respective pros and cons. Most importantly though, he helped me to lock in the best rate a few months prior to my remortgage date. With subsequent market movements it was great to have piece of mind that we had locked in early.

    I would have no hesitation in using Donny and MSP Financial again! Thanks again Donny!

  • I’ve always been impressed

    Chris Sykes at MSP Financial has handled all my mortgages over the years, and I’ve always been impressed by his professionalism and attention to detail. He doesn’t just find a deal and leave it there, he keeps an eye on things and always lets me know if there’s a rate drop or a better option available. Where other brokers might miss those opportunities, Chris makes sure I never do. He’s clear, thorough, and genuinely has your best interests at heart. Absolutely worth the fee for the level of service and peace of mind he provides.