Self-Build Mortgages
Funding that arrives in stages, so the build never stalls.
You can’t mortgage a house that doesn’t exist yet
A self-build mortgage is financed differently to a normal home loan. Money is released in stages, plot, foundations, wind-and-watertight, completion, sometimes in arrears and sometimes in advance, and cash flow between stages is what makes or breaks the project.
It’s a specialist market with a small pool of genuinely engaged lenders, each with their own stage structures, warranties and inspection requirements. We arrange these regularly, including for our own director, who has built his own home and knows the process first-hand.
How ERG helps
- Stage structure that fits YOUR build:
- Advance or arrears releases, timber-frame or traditional, main contractor or self-managed. We match the lender’s release pattern to your build programme and cash flow.
- From plot to completion:
- Plot purchase, build costs, contingency and the exit onto a standard mortgage at completion, planned as one journey, not four separate problems.
- Real experience:
- Self-build is an ERG specialism, with completed client projects across Shropshire and beyond, and the scars and shortcuts that come with having done it ourselves.
Who we help
Self-build journeys we fund:
- Plot purchases with outline or full planning
- Knock-down-and-rebuild projects
- Timber-frame, SIPs and non-standard construction
- Barn and agricultural building conversions
- Major renovations financed in stages
How a self-build mortgage releases funds
Funds are released in stages as the build progresses, so you only draw down what the project needs and keep interest costs down. Lenders typically ask for a detailed build plan, costings and proof of planning permission, and release each stage after an independent valuation. Our guide walks through all of it.
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01
Land purchase
Securing finance to acquire the plot.
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02
Preliminary costs
Covering initial expenses such as planning permission and architect fees.
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03
Foundation stage
Releasing funds as the foundations are completed.
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04
Structural stage
Financing the walls, roof and key structural components.
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05
Final fix and completion
Covering interior fixtures, fittings and final finishes.
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06
The exit
Refinancing onto a standard residential mortgage at completion, or releasing equity for the next project.
Frequently Asked Questions
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In stages tied to build milestones, typically plot, slab, wind-and-watertight, first fix and completion. Some lenders release after each stage is inspected (arrears); others release in advance, which is kinder to cash flow. Choosing between them is a core part of the advice.
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More than a standard purchase, lenders typically fund a proportion of land and build costs, with the balance from you. Equity in an existing home can often be released to provide it; we structure that side too.
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Most self-builders refinance onto a standard residential mortgage at completion, at the property’s finished value. We plan that exit from day one so the end of the build is a formality, not a cliff edge.
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