When you’re looking for your dream home, you might want to buy some land and have contractors design a home specifically for you. You can build the exact home you’ve always wanted, and thanks to the government’s Help to Build scheme, you could have access to funding to help make it the most economical way to become a homeowner.
This does not constitute advice and advice should be sought in all instances before acting on it.
What is the Help to Build Scheme?
This new government scheme will be available later this summer and while we still don’t have full details, we do know that 30,000 to 40,000 households – especially those with smaller deposits – could use part of the £150million of funding available for the scheme each year for the next four years.
The new Help to Build equity will work similarly to the Help to Buy equity scheme for first time buyers. Government loans are available for people to put toward the deposit on a property to build.
Additional funding upfront provides access to better mortgage rates and using a loan towards the deposit allows you to use more of your own money for building costs.
It’s an exciting prospect for self-build borrowers, who typically, would need a higher deposit, but the Help to Build scheme is designed to solve that problem.
What’s the definition of ‘self-build’?
If you’re worried you might have to get hands-on and do the building yourself, you can rest easy.
Self-building just means that instead of buying a new home that is being built by a developer, you acquire a plot of land or a renovation project and have your home designed to your exact specifications.
As a busy medical and dental professional, you can be involved as little or as much as you want in the building process, but be sure to enlist professionals when necessary. Self-builds require a lot of time to plan and manage, the right budget to pull it off, and knowledge of planning permissions and other rules so you do everything by the book.
Do you need a special mortgage?
Because the timeline on building a home differs from simply buying an already built house, you’ll need money at different points, so a normal mortgage might not cut it.
The good news is that there are specialist self-build mortgages that allow you to release funds over a period of time, either ahead of time or in arrears. In the latter case, you’ll need to have enough money up front to pay for products and services associated with building your home.
When our clients consider self-building, we do recommend working with a specialist broker for a mortgage.
Self-build mortgages usually have additional or special requirements that a normal mortgage wouldn’t. Mortgage brokers know all about these requirements and can help advise on the different deals available, what you’ll need to begin your application, and how much of a deposit you’ll need before you can get started on your building project by getting quotes.
Is the Help to Build scheme right for you?
If you’re not sure if tapping into government funds through the new Help to Build scheme is right for you, talk to a specialist mortgage broker about your project. We’ll help you decide the best way to get you into your dream home, so get in touch today.
Considering a self-build?
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