Why You Should Seriously Consider Building Your Dream Home – A Guide to Self-Building and Self Build Mortgages
Why Build It Yourself?
Building your own home is becoming an increasingly popular and viable option for people as the housing market remains saturated and house prices continue to soar. TV shows like Grand Designs and The Restoration Man are proving that ordinary people are able to create their own dream home, and that ideas that were once mere pipe-dreams can be realised.
In 2014, UK Planning Minister Nick Boles said ‘Building your own house is a more affordable way to provide a family home.’ He went on to recommend self-builds as a ‘very good’ option for people wanting to get on the property ladder. With a chronic lack of housing in the UK, the UK government is taking steps to encourage people to build their own home by reducing barriers and creating financial incentives.
If a self-build is managed well, the completed property should be valued to yield a substantial profit on building costs. This ‘sweat equity’, combined with vastly lowered costs on the installation of many features creates an attractive prospect for those considering building their own home.
Building your own property offers you complete freedom to design the home that you want – the way you want it. From the floor-plan to the lighting – you are at liberty to create the house of your dreams without restrictions.
But What About the Stress?
The process of building your own property will never be problem-free, and things can easily go wrong. However, tailored mortgages for self-builders like those from Saffron Building Society can ease the financial pressure, and allow people to concentrate on successful, sensibly-budgeted project management.
So How Do Self Build Mortgages Work?
An Interest Only Self Build Mortgage offers self-builders the opportunity to gain finance for their project without the immediate worry of expensive monthly repayments. Instead, people who take out such a mortgage need only pay back the value of the monthly interest, with a lump sum being paid back at the end of the mortgage term.
However, Self-Build Mortgages also differ from conventional mortgages in that funds are released at each key milestone in the building process – for example, when foundations are laid and when the roof is watertight. This encourages careful budgeting and ensures finances are in line with the end goal.
Before applying for a Self-Build Mortgage you will need to have a few things in place first, including planning permission, architectural drawings and a full breakdown of the work that will be undertaken. With these details, well-informed advice and guidance can be given by your mortgage provider.
Overall, Interest Only Self Build Mortgages offer a financially viable option for aspiring self-builders. There may never have been a better time to think about making your dream home a reality.
Have you considered building your own home? What would your Grand Design look like?
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