Can I Get a Self-Build Mortgage for 2 Properties?

Yes, you can potentially obtain a self-build mortgage to fund the development of a pair of semi-detached houses on land you own. Self-build mortgages are specifically designed to finance the construction of a property, whether it's for personal use or for investment purposes. 

These include your previous (if any) development experience, your personal incomes, the cost of the build and the cash that you are putting into the development. 

You would need to show that planning permission has been granted, architect’s plans and a breakdown in build costs. Development finance isn't always the easiest to place, and the complexity often means it's better to have an experienced mortgage broker to position your case in the right way to the right lender. 

Read More About Development Finance 

Your other option would be to split the title of the plots, to do a self-build on the property you intend to live in, and a development loan on the other. Once the second is built you could then either sell it or remortgage it onto a buy-to-let. 

Here are some key points to consider: 

1. Eligibility - lenders offering self-build mortgages will have specific eligibility criteria that you'll need to meet. This may include requirements related to your credit history, income, and the viability of the construction project  
2. Deposit - like traditional mortgages, self-build mortgages typically require a deposit. The deposit amount can vary depending on the lender and the specific terms of the mortgage. Generally, you'll need to contribute a percentage of the total project cost upfront  
3. Stage payments - self-build mortgages are usually released in stages as the construction progresses. The lender will conduct valuations at different stages of the project to release funds accordingly. This helps to ensure that the loan amount aligns with the actual progress of the construction  
4. Planning permission - before applying for a self-build mortgage, it's essential to have planning permission for the development. Lenders will typically require evidence of planning permission as part of the application process  
5. Cost estimates - lenders will also want to see detailed cost estimates and construction plans for the project. This helps them assess the feasibility of the development and determine the loan amount  
6. End-use considerations - if you plan to live in one of the semi-detached houses and rent or sell the other, make sure to communicate this to the lender. They may have specific requirements or considerations for owner-occupied versus rental properties  
7. Interest rates and repayment terms - self-build mortgages may have different interest rates and repayment terms compared to traditional mortgages. It's essential to compare rates and terms from different lenders to find the most suitable option for your needs  
8. Professional advice - given the complexities involved in self-build projects and self-build mortgages, it's advisable to seek advice from a mortgage broker who specialises in this area. We can help you navigate the process, find suitable lenders, and ensure that you're making informed decisions  

Overall, obtaining a self-build mortgage for your development project can be a viable option, but it's essential to thoroughly research your options, understand the requirements, and seek professional advice to ensure a successful outcome. 

If you would like to discuss this in more detail, then please contact one of our mortgage experts on 0330 433 2927.