Financing your oak framed self-build house

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The importance of choosing the correct self-build mortgage

When embarking on your oak frame self-build project, establishing your budget and getting your finances together is one of the most critical parts of the process. If you are opting for this route, then your choice of lender and associated mortgage-type needs to be considered carefully. There are a wide range of mortgage products depending on your own particular circumstances and requirements which dictate how the funds are released.

Obtaining finance is one of the biggest challenges you will face but there is no need to be daunted by this process as there is a lot of support and guidance available to you. We recommend your first point of call should be Buildstore Mortgage Services, the UK’s self-build and renovation finance experts. Buildstore will be able to provide a wide selection of mortgage options that are flexible to the specific finance requirements of your oak frame self-build.

How do self-build mortgages work?

The main difference between a self-build mortgage and a standard house purchase mortgage is that finance is released in multiple stages. Depending on your particular plan, the typical 6 stages during a timber frame self-build project are:

  • Purchase of land
  • Preliminary costs and foundations
  • Timber frame kit erected
  • Wind and watertight
  • First fix and plastering
  • Second fix to completion

There are two styles of self-build mortgage, each offer the release of funds at different times. The first is based on traditional arrears stage payments, and the second is based on advanced stage payments. Your current financial situation will determine which of these styles will suit you best.

Advance stage payments

Buildstore’s Accelerator mortgage is ideally suited to timber frame projects as your money will be released at the beginning, rather than the end of each build stage. This means you will have access to the funds for the early stages of your build, including your land purchase, frame deposit and the erection of your project.