Advice on Raising Money for Your Build Project in NI


Building your own home can offer two main advantages:

– the chance to have a home designed specifically for your needs, style and taste
– often it can be less expensive than buying a pre built home

If you intend and are required to borrow money to finance the project , it is important to understand that the securing of finance for this type of build can prove more complex than securing a standard mortgage for a resale property. The type of mortgage you will require is a SELF BUILD MORTGAGE.

These types of mortgages differ from regular mortgages in that they release money at various stages, as opposed to providing a one off lump sum. The two types of self build mortgages are:

  1. Arrears based: whereby money is released after a stage has been completed.
  2. Advance payment scheme: whereby money is made available in advance of each stage of build.

It must be noted that the payment in advance option is quite rare and not something that is provided by every lender, due to the higher risk involved.