Can I get a mortgage to include purchase of the site?
Yes a self-build mortgage can include purchase of the site. Maximum mortgages are generally 3.5 times gross annual income and 80 per cent of the property value (90 per cent of the property value for first-time buyers). In the case of a self-build, the property value is typically calculated as either the site purchase cost (if applicable) plus build costs or the final valuation upon completion. Typically, the lower of these two figures applies. It is also prudent to have an extra 10 per cent of the total cost to cover unforeseen expenses, contingences, cost overruns and furnishings. For useful information and articles on building your own home, including Homemade – our self build guide, have a look at our Self-build page here.