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Building your dream home is an exciting prospect. It gives you the opportunity to create a home that suits your style, preferences and family's needs. However, building a home can be an expensive undertaking, especially if you don't have the finances upfront. This is where self-build mortgages come in handy. In this guide, we'll cover everything you need to know about self-build mortgages in Northern Ireland. So, let's get started!
Self-build mortgages are loans designed to help you finance the construction of your own home. Unlike traditional mortgages, self-build mortgages are released in stages as the building work progresses. This means you only pay interest on the money you have received, which can help keep your costs down. Self-build mortgages Northern Ireland can be used for a range of building projects, from building a home from scratch to renovating an existing property.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
If you're considering a self-build and need a mortgage, here's how the process works:
Planning: Before you can apply for a self-build mortgage, you'll need to have a detailed plan of your building project. This should include your budget, building plans and planning permission.
Deposit: Self-build mortgages usually require a larger deposit than traditional mortgages. Typically, lenders require a minimum of 25% deposit to secure the loan.
Release of funds: Unlike traditional mortgages, self-build mortgages release funds in stages as the construction work progresses. The lender will send out a surveyor to check the progress of the build before releasing each stage of funds.
Interest: With selfbuild mortgages, you only pay interest on the money you have received, which can help keep your costs down.
Final payment: Once the building work is complete, you'll need to make a final payment to settle the mortgage. This can be done through the sale of your previous property, savings or by refinancing the mortgage.
An earlier stage might be site purchase, although worth noting that most lenders prefer if the borrower already owns the site to be built out on. However, options do exist for those who wish to borrow to assist with the purchase of the site too.
To be eligible for a selfbuild mortgage, you'll need to meet the following criteria:
Self-build mortgages offer a range of benefits, including:
Customisation: Self-build mortgages allow you to create a home that suits your style, preferences and family's needs.
Lower costs: With self-build mortgages, you only pay interest on the money you have received, which can help keep your costs down.
Higher value: Self-build homes tend to have a higher value than pre-existing homes, which can
make them a good investment in the long run.
Quality control: When you build your own home, you have control over the quality of the materials and workmanship used in the construction process.
Energy efficiency: Building your own home gives you the opportunity to incorporate energy-efficient features that can help reduce your energy bills.
Planning and due diligence
While self-build mortgages present certain disadvantages, these can be overcome with thorough planning and due diligence:
Elevated risk: Constructing your own house inherently carries a degree of risk compared to purchasing a pre-existing property. However, meticulous budgeting and contingency planning can help mitigate unforeseen expenses and construction delays.
Time investment: The process of crafting your bespoke residence may indeed demand significant time and dedication. But remember, this allows you to create a truly personalised space that reflects your individual taste and preferences.
Restricted choices: Securing an ideal plot of land in a sought-after location can prove challenging, potentially constraining your options. Nevertheless, exploring alternative areas and remaining open to creative solutions can ultimately lead to the realisation of your dream home.
A self-build, custom build or conversion is more complicated than a regular purchase. At NJW Financial we understand how Self Build Mortgages work.
NJW understands the importance of cash flow and will help you ensure that your project is funded on time. We know the importance that lenders attach to certain areas such as the location of the plot, affordability and construction method.
To discuss a project, please call, email, or book a phone appointment via the website with an advisor.
Frequently Asked Questions
Lenders consider them to be a greater risk, so fees and interest rates are often higher. They are only offered by a handful of lenders, which means there is less competition to offer lower rates. Other costs such as planning permission or buying a plot will also need to be considered before you can obtain a mortgage.
If I own land, is a self-build mortgage possible? This question can be answered in a few words: Yes it is!
First-time buyers can get a self-build mortgage. Yes! Yes! Lenders are more cautious with first-time buyers than usual, especially if it is a self-build project but it can be done.
Typical deposits will be a minimum of 20 -25%. Generally, if you already own the land, that is considered your deposit.
We’d love to hear from you. Call 02895 575010 or 0141 291 5044 or send us a message using the form below and we’ll tend to your enquiry right away.
NJW Financial Ltd is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority.
We are committed to providing a professional service to all our customers.
If you are unhappy then we want to hear about it so we can try to put things right. With this in mind, we have the following complaints procedure in place.
You can make a complaint by any reasonable means including telephone, letter, or email.
Our contact information:
• Write to: Nick Ward
• Telephone: 02895 575010
• Email: info@njwfinancial.co.uk
If you prefer, you can also refer your complaint to PRIMIS directly using the following contact details:
• Write to – PRIMIS Mortgage Network, Customer Resolution Team, Ground Floor, Birmingham Business Park, B37 7YT.
• Telephone: 0121 767 1139
• Email: complaints.solihull@primis.co.uk
You can also complain via their website:
• https://www.primis.co.uk/privacy-notices/complaints/
The same section of the website contains more information about PRIMIS’ role in complaints handling and about how Appointed Representative relationships work.
How we will handle your complaints
Simplified Complaints
We will use this process if:
• your complaint is about a simple matter - that we can look into and solve quickly and easily; and
• you direct it to us (rather than directly to PRIMIS Mortgage Network) in the first instance.
We will investigate your complaint and aim to resolve it within three business days following the date of receipt. If you are happy to accept our proposed resolution, we will send you written confirmation of our investigation.
If you cannot confirm acceptance by the end of the third working day (for example – because you are not happy with our proposed response or if you are not available to discuss it with us) then the case will be referred to PRIMIS Mortgage Network. It will then be handled in line with the Formal Complaint process outlined below.
If your complaint is more complex or is unlikely to be resolved quickly then we will usually refer it to PRIMIS straight away
Formal Complaints
The formal complaints process will be used where:
• we can’t resolve your complaint to your satisfaction within 3 working days: or
• your complaint is likely to involve more complex assessment or investigations; or
• you send your complaint directly to PRIMIS Mortgage Network rather than to us in the first instance; or
• you ask us to deal with your complaint in this way rather than via a simplified process.
Upon receipt PRIMIS will acknowledge your complaint promptly and will investigate it fairly and impartially. They will write to you within 8 weeks to confirm the outcome of their investigation.
In the unlikely event that their investigation is not complete within eight weeks of receipt of your complaint they will write to you to explain why and let you know when you can expect to hear from them. They will also provide details of how to contact the Financial Ombudsman Service if you are not satisfied with progress.
The Financial Ombudsman Service
If, following PRIMIS’ investigation you are still not happy with the outcome you have a statutory right to refer your complaint to the Financial Ombudsman Service.
It is a service free of charge to consumers and you may refer the matter to the Financial Ombudsman Service (FOS) within six months from the date that you received a final response to your complaint.
You can contact the service using the following details:
Telephone 0800 023 4567
Email: complaint.info@financial-ombudsman.org.uk
You can also visit their website and refer complaints to them online by visiting.
https://www.financial-ombudsman.org.uk/
Let us know if you need any extra help or support.
We are committed to providing a complaints service that is accessible to all our customers.
If you will have any difficulties with any elements of the process that is outlined above, or if there are circumstances that might mean we need to change the way in which we handle your complaint then please let us know when you tell us about your complaint.
NJW Financial Ltd is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority (FCA). NJW Financial Ltd is a company registered in Northern Ireland, company number NI688242, with its registered office at 17 Carnmoney Road, Newtownabbey, Northern Ireland, BT36 6HL
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any other product or service offered by NJW Financial Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority.
Most Buy to Let mortgages are not regulated by the Financial Conduct Authority. Wills are not regulated by the Financial Conduct Authority and may have limited consumer protection.
The guidance and/or advice contained within this website is subject to UK regulatory regime and therefore restricted to consumers based in the UK.