Self Build Mortgage

Scottish Building Society offers mortgages for people looking to build their own home and we can provide advice on all aspects of self build mortgage finance. Our Self Build Mortgage may also be suitable if you are renovating or extending your existing property. Our specialist mortgage advisors can guide you through the application process and help make everything as smooth as possible.

For more information about self build finance please download our Self Build Brochure.

For full details of all discounted, variable and fixed rates currently available please see our interest rate information pages.

To discuss our products in more detail please visit your nearest branch or call us on 0845 600 4085 and speak to one of our mortgage advisors

Your home may be repossessed if you not keep up repayments on your mortgage.

Key Features of our Self Build Mortgage:

Suitable for:

People looking to build their own residential property in Scotland. Properties may be constructed by either:

  • a single builder on a fixed price contract, or
  • on an all trades basis under direction of a suitably qualified project manager
Release of funds:

For a self build mortgage, funds are released in stages after each section of work is complete. The list below is a typical example of how this might happen but we can be flexible, depending on the type of build and your circumstances:

  • Purchase of land (when full planning permission is in place)
  • Foundations laid
  • Up to eaves level
  • Wind and watertight and roof tiled
  • Interior walls complete (plastered out)
  • Ready to move in

Each tranche of funds is released when confirmation is received from our Valuer that the stage has been completed to a satisfactory standard. If the construction is being supervised by an architect then they will also have to issue an interim certificate.

The property build must be carried out by a builder registered with the National House Building Council (NHBC). Alternatively, the build must be covered by NHBC Solo or you must employ an architect or RICS qualified surveyor with professional indemnity insurance to supervise the build. Please contact our experienced mortgage advisors for full details.

Maximum Loan:

We will lend up to 80% of the total cost of the land and construction cost (whichever is lower) for loan amounts up to 250,000.

We will lend up to 75% of the total cost of the land and construction cost (whichever is lower) for loan amounts between 250,000 and up to 300,000.

The value of the land, if already owned and debt free, may be included in the borrower's contribution.

Term: Applicants must be at least 18 years old on application and normally not more than 70 at end of mortgage term. Minimum mortgage term is 5 years and maximum term is 40 years.
How much can I borrow?

All mortgage applications are based on affordability.

As a guide we will lend up to:

  • Main income x 4, PLUS second income x 1 OR
  • Joint income x 3.

Any existing financial commitments will also be taken into consideration when affordability is calculated.

Interest Rate Options: We have a range of competitive interest rate options which you can choose from. For full details please see our interest rate information here.
Repayment:
  • Capital and Interest
  • Interest only. During the build of your property, the mortgage can be on an Interest Only basis but must be converted to a Capital & Interest repayment mortgage on completion of the build if you do not already have a suitable repayment vehicle in place. Acceptable repayment vehicles are endowment policies; stocks and shares ISAs; pension lump sums; and second/investment properties.
Security: A first charge will be taken over the land and property being built as security for the mortgage lending.
Flexible Features:

When the build is complete and on production of the Completion Certificate we will allow a switch to a standard residential product available at that time. The early repayment charge will not apply. The new product may have early repayment conditions attached.

Where Early Repayment Charges apply to any of our mortgages you may be allowed to make overpayments (normally up to 10% of the loan amount per annum) without penalty.

Insurances: You must ensure specialist self build insurance is in place prior to commencement of the project.
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