Self Build

A self-build mortgage is aimed at people requiring finance to build their own property as opposed to buying an existing one – they can also be suitable for renovation projects. The money is typically released in stages as the build progresses with the mortgage lender visiting and assessing the build at each stage and depending on the deal, money is released either before or after each stage.

The most common stages are as follows:

  • Stage 1 – Purchase of land
  • Stage 2 – Foundations
  • Stage 3 – Wall plate level
  • Stage 4 – Wind and watertight
  • Stage 5 – First fix, inc. plastering
  • Stage 6 – Second fix to practical completion

Different lenders may have more or less stages and so your individual needs may affect your ultimate choice of lender. White Mortgages will discuss and help you decide which lender is best for you and your particular situation.


There are two types of self-build mortgage each defined by when you get money during the build. They are called advance and arrears and each are described below.

The traditional type of self-build mortgage is on an ‘arrears’ basis. With this type, the lender will normally release money for the build in stages to correspond with the build stages outlined above.

The money for each stage is paid out at the end of the stage once the work has been completed and a valuer has visited the site i.e. in arrears of the work being done.

An arrears self-build mortgage is best suited to people who have sufficient savings to fund the early stages of the build as well as sufficient savings to buy the land.

Other lenders recognise that not every self-builder has access to the money required to buy the land and fund the early stages of the build so have created an alternative – the ‘advance’ self-build.

Here money is released for each stage of the build at the beginning rather than the end of the stage giving you the cash you need to buy materials and pay your builder. In most cases, lenders are also willing to help finance the initial purchase of the land.

White Mortgages have access to both types of self-build mortgage and so, based upon our discussions with you, will help you choose the right scheme for your needs.