Self Build Mortgage

SelfBuildImageScottish Building Society offers mortgages for people looking to build their own home in Scotland 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 advisers can guide you through the application process and help make everything as smooth as possible.

For full details of all interest rate options 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 0345 600 4085 and speak with one of our mortgage advisers

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 advisers for full details.

Maximum Loan:

We will ultimately lend up to 80% with a maximum of 60% for the initial release based on the land alone.

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 85 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 4.5, PLUS second income x 1 OR
  • Joint income x 3.5

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.

Capital and Interest

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.

Member Enquiries

To talk to us about an existing savings or mortgage account, contact your local office.

Contact your local office

 New Savings Enquiries

0345 600 0585

New Mortgage Enquiries

0345 600 4085

 Lines open 9-5 Mon to Fri (10-5 Wed) and Sat 9-12.
Calls may be recorded and/or monitored.