A self build mortgage lets you borrow money to build your own property. If you plan to build your own house, you'll need a specialist mortgage because most deals can only be used to buy houses that have already been built.

Many larger lenders do not offer them, but several building societies and smaller banks do. This comparison includes every self build mortgage available in the UK.

If you need help finding the right mortgage, you could contact a broker for advice.

How do they work?

Self build mortgages transfer money to you in stages as you build your house. You can usually have money released to:

  1. Buy the land

  2. Build the foundations

  3. Construct the house's shell

  4. Finish the plastering, plumbing and electrical wiring

  5. Complete the project and get the home valued

When do you get the money?

This depends on whether your mortgage offers:

  • Arrears stage payment, which releases money when you complete each stage of the build and can prove how much it cost. You usually need to find a way to pay for materials and work in the meantime.

  • Advance stage payment, which releases money before you need to pay each bill.

How much do they cost?

You usually need a larger deposit if you want to build your own home. Mortgages come with a loan to value (LTV), which is the percentage of the property's value they can cover.

Self build mortgages often have a separate limit on how much you can borrow for:

  • Buying the land (e.g. 75% of the total cost)

  • Your projected costs for building the house (e.g. 85% of the total amount)

You usually need to pay at least 15% towards the project yourself, but many deals need an even larger deposit.

The interest rate and any fees that come with the mortgage also affect how much it costs. Here are all the costs of mortgages and buying a home.

Self build mortgage FAQs


Is it better to buy an existing house?


Building a home can work out much cheaper if things go well but could involve much more work and risk. Here are the pros and cons.


How do I build my own home?


It is important to set a budget, work out the cost and plan the timescale carefully. Here is everything you need to know about building your home.


Do I need planning permission?


Yes, you have to get planning permission to be legally allowed to start building. Here is how to get planning permission.


Can I switch to a better deal after the house is finished?


You could switch to a normal mortgage with a lower APR, but make sure your self build mortgage does not charge an early repayment fee.

About our mortgage comparison


Who do we include in this comparison?


We include mortgages available through our independent broker, LDT Finance. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.