As a long-time local and real estate expert in Burnley, I know all the little quirks and perks of this area. If you’re thinking of building your dream home here, you’re in good company. With its rich history, beautiful scenery, and a friendly, lively community, Burnley is a great place to live. But let’s face it, planning a self-build home is a big job. Figuring out the funding is often the toughest part, especially if you’re new to all this. In this guide, we’ll take a look at some of the ways that can help you finance your dream home in Burnley. Let’s make it simple.
You need money for your self-built project, right? You could use your savings, sell your current home, or get a special self-build mortgage. Each option has its pros and cons. For example, using savings or selling a home might not be possible for everyone. A self-build mortgage could be a better choice. With this, you get the money in stages as your home gets built, which can really help with cashflow.
When you apply for a self-build mortgage, make sure the lender understands your project. They usually release funds at key stages, like buying the land, laying the foundation, and when the house is weatherproof. Sometimes, they might give you the money after you’ve finished each stage. There are mortgage deals where you get money before each stage (advance stage payment) and those where you get money after each stage is completed (arrears stage payment) – it depends on what serves you best.
Show your lender detailed plans for the project. This includes planning permission, quotes, and timelines. Make sure your budget includes everything, even fees like Stages Inspection Charges, Valuation Report Fee, or Product Reservation Fee. Remember, the larger the portion of the project cost you can pay, the better mortgage rate you might get.
Another option is a bridging loan, a temporary loan until you get long-term financing. This could provide immediate funding for your build. But remember, it’s usually a costly option. So, only consider it if you have a clear plan for the long-term, like selling a property or getting a long-term mortgage.
You might also want to look at BuildLoan and Accelerator mortgages, finance products from Self Build Zone. They’re designed for self-builds, with flexible borrowing options based on your financial situation and project scope.
Government schemes like the Help to Buy Equity Loan could also be helpful. Here, the government lends up to 20% (40% in London) of the cost of your new home. You’ll need to pay just a 5% cash deposit and get a 75% mortgage. However, there are limits on how much you can buy, and you need to pay back the equity loan after 25 years, or earlier if you sell your home.
Finding the right financial option for your self-build can seem complicated. Don’t just rely on regular mortgage brokers. A self-build broker can give you specific insights and help you find the best financing solution for your project.
To wrap up, Burnley is a great place for your self-build project, as long as you have a solid financial plan. From flexible self-build mortgages to bridging loans, government schemes, and custom financial products, there are many ways to fund your dream home. But remember, not only is the right financial choice important, so is the right advice. Talk to local Burnley folks, professionals, and mortgage brokers to help guide your way. Building a home is as much about the journey as the destination. Enjoy the process, and welcome to your new neighbourhood!