Build your dream home with the help of a self-build mortgage.

10 January 2024

What could be more exciting, if slightly terrifying, than building your own home? Working with architects and designers to come up with your very own grand design! Of course, we've all watched Kevin McCloud gloomily preside over fantastic builds beset with drama at every turn. All those problems make good telly – it would be boring if everything went to plan. Ultimately, it all ends well, the self-builders get the bespoke home of their dreams and Kev proclaims it as an “architectural triumph!”

You’re sold! You've found the perfect plot, and you want to build your dream home. The very first thing you'll have to consider is your budget and how you’re going to fund your build. Let us guide you through the money decisions, so you can focus on the main event.

Self-build mortgages differ from regular mortgages as the funds are released in stages rather than one lump sum. Peritus Private Finance are unlimited in the range of mortgages we can consider for you. This means we can do the legwork; taking time to understand your unique situation and then find you the best deal.

These complex mortgages raise lots of questions. We’ve answered the most common below: 

Q: Who can get a Self-build mortgage?

A: Firstly, you don’t need to be a property expert! Like ‘normal’ mortgages, the lender will have criteria that must be met. For example, you’ll need to be able to demonstrate you can afford the payments, both now and under various stress tests. The biggest difference will be the amount of cash you’ll need; as funds are released in stages (often in arrears) you will need 20% – 40% of the build cost in cash to start the project before any funds are released from the lender.

Q: What are the fund release stages?

A: The stages are generally:

  • Buy the land
  • Complete the footings and foundations
  • Erect the walls and roof so the “shell” of the building is watertight.
  • Completion- ta dah!

Q: Are there different types of Self-build mortgages?

A: Whilst all Self-build lenders release money in stages, some do this in advance ( i.e. before you start that stage) and some do this in arrears, (i.e. once the stage has been completed and inspected). There are cost implications to this choice. Advance payments come at a premium, payments in arrears are cheaper as they’re less risky for the lender.

Q: Can I just go to the high street for an ‘off the shelf’ mortgage?

A: You’re not building an ‘off the shelf home’, so this won’t do the job! Yes, some of the lenders are found on the high street, but they tend to be less well-known regional building societies. We deal with lots of these specialist lenders and can navigate the application process on your behalf. All Self-build mortgages are regulated by the FCA, just the same as regular purchase mortgages.

Q: Can I use land as a deposit?

A: Yes. In fact, this would be the perfect start to your project! As you’ll need between 20-40% deposit for the mortgage some lenders will consider this your deposit, so you can spend the full loan amount on building your home.

Q: Do I need site insurance for my build?

A: A self-build project is an exciting prospect involving a considerable investment of time and money. Your self-build project may look completely different to another – will it be 100% DIY? Builder & subcontractors? A timber frame system?  Custom build? A turnkey solution? Irrespective of what route you choose, you’ll need site insurance. We have partnered with Protek who provide ‘A-rated’ warranties for all types of self-build projects.  


What our clients say:

“Our adviser’s combined product knowledge, total commitment and support enabled our mortgage application to run very smoothly throughout the entire process. We are now enjoying our new home. I strongly recommend Peritus Private Finance to anyone considering the same journey.” 


So, there you have it. I think we can all agree that self-build is not for the faint-hearted. But building your own home could be one of the most rewarding, creative experiences. Creating a unique space designed for the way you live your life. A space that maybe even Mr McCloud would approve of!


Peritus charge a broker fee for mortgage advice, depending on the complexity. Typically, this is between £695-995. We also receive a commission from the lender.

Peritus will receive a commission for any introductions made to Protek that result in a warranty purchase.

Your home may be repossessed if you do not keep up repayments on your mortgage.