SELF BUILD MORTGAGES
HELPING YOU BUILD YOUR OWN HOME
A self build home is a property of traditional or timber framed construction to be built on land which you either own or which you may be in the process of acquiring. Normally the property will be based on your own specifications but will be professionally designed, built and certified. This does not preclude you from becoming involved in the project as there may of course be some tasks you will wish to tackle yourself.
Our self build mortgage is designed to provide a reliable source of finance from purchase of the plot through to completion of the project. It can also be tailored to other types of schemes, for example barn conversions and renovation of old property.
WHAT WE OFFER
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How you can qualify for a self build mortgage
To qualify your project must fall within the following criteria:
- A property being built for you as your main residence (a self build mortgage is not available for the construction of flats or maisonettes).
- A property constructed on your own building plot by a recognised builder and covered by an NHBC warranty (National House Building Council) or certified by a suitably qualified consultant.
OR
- A property constructed on your own building plot using sub-contractors. This type of project would need to be supervised by a suitably qualified consultant or be covered by an appropriate structural warranty. Warranties acceptable to the Society are provided by NHBC (Solo) for Self Build, Zurich 10 warranty, LABC new home warranty, Premier Guarantee for self builders warranty and Self Build Zone warranty.
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How you can repay the loan
A Cumberland self build mortgage can be linked to a range of repayment methods offered by the Society. One of our mortgage advisors will be able to discuss with you the method most appropriate to your own circumstances.
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Information you need to provide
To help us assess your request fully we shall require the following information in addition to our usual mortgage enquiries:
- A copy of detailed planning permission which should have an unexpired term of at least 4 years (if you only have outline planning permission this does not preclude you from discussing your requirements at that stage).
- A copy of current building regulation approval.
- Details and price of the building plot.
- Costings of the total project (it may be appropriate to have these confirmed under guidance of a suitably qualified consultant).
- An estimate of cash requirements at the various stages of construction.
- The name of the firm of builders employed to construct the property and confirmation of their NHBC status or details of the consultant supervising the project.
- If on a sub-contract basis, details of the consultant or the building warranty arrangements covering the project.
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Insurance
Having the right insurance policy is as important as any other element in creating your own home.
Whilst in some cases you may be able to rely on a contractors all risks policy the Society would normally require you to arrange your own self build policy covering the three main areas of risk, i.e. Public Liability, Employers Liability and Contract Works Cover. We can provide details of brokers who specialise in this type of cover.
If a professional consultant is being used to monitor the project a copy of their professional indemnity insurance must be exhibited to and approved by the Society prior to release of funds.
As a condition of any mortgage you will need to ensure that the property is adequately insured (e.g. Building Insurance), however, this insurance does not have to be arranged through us.
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When money will be released
Before commencement of the project we shall agree the stages at which funds will be released from purchase of the land (if necessary) through to final completion of the project. If monitored by a consultant we shall also agree at which stage certificates will need to be issued. As an indication the following guidelines will be used.
HOUSE/BUNGALOW
- Foundations
- Wall plate level
- Roofed in
- Plastered out
- Completion
TIMBER FRAMED PROPERTY
- Foundations to damp proof course level
- Load bearing framework plus felt and batten roof
- Roof tiles, brick-skin and glazed
- Services first fixed and dry-lined
- Completion
Renovation/Conversion of older or more unusual properties will be based on the same guidelines but the stages for release of funds will be discussed on an individual basis.
At each stage the Society will need a re-inspection carried out to confirm the value of the project before monies are released.
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Other considerations
- A contingency sum should be built into the initial calculations to provide for any cost over runs on any part of the project.
- Allowance should be made for any fees which may be payable. These may include for example a valuation fee, costs of providing services to the site and legal and professional fees.
- It is sometimes advisable to commission a report from a soil investigation engineer to determine the type of foundations needed to support the weight of your new property.
- Value added tax (as at November 2009) is not payable on new housing. If you do pay VAT on construction materials you may be able to reclaim this later.
- You should always ensure that you take appropriate independent professional advice before proceeding with any self build project. An early-repayment charge may be payable depending upon the terms on which your loan is agreed. Arrangement fees may be charged.
- Whilst we have tried to answer many of the usual questions regarding self build projects each scheme does tend to differ. If you would like any further information then please contact your local branch who will be pleased to discuss your proposition and advise on the terms currently available.