How to find the most suitable self build mortgage broker

134,780 new houses were completed in the UK in the year ending March 2024, a drop of 12% when compared to the previous year’s 153,800. This drop in new properties can lead some to considering building their own property, but for many, that means finding a self build mortgage. But what is a self build mortgage and how can you choose the most suitable broker for you?

What is a self build mortgage?

A self build mortgage provides the funding needed to construct a new property from scratch. While a traditional mortgage delivers funds upfront, a self build mortgage releases funding in instalments, based on planning stages. 

Example: Let’s say you and your team put together a building strategy for a new apartment development. The plan is spread across 12 months, starting with a land purchase in January, for 20% of the total cost, followed by a materials acquisition in March, for 40% of the total cost, and then in June you must pay the final 40% of the total cost of labour as a down payment to a construction company you’ve worked closely with in the past. In this instance, you would receive the mortgage at staggered intervals in line with the plan’s costs, ie early January, March, and June. 

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Why should you use a broker to find a self build mortgage?

Using a broker to find a self build mortgage is completely optional, but there are some key benefits you might like to consider. Firstly, self build mortgages are a bit more specialised than standard mortgages, making them a little harder to find. That difficulty only grows when you’re applying as a business and looking for a commercial mortgage. 

A broker can reduce the time spent looking for a suitable mortgage exponentially. If you use an established broker, like Funding Options by Tide, they facilitate a wide range of mortgages each year and have a network of lenders they regularly work with. 

In our case, we have a network of over 120 lenders. Rather than spending hours scanning search results, our clients are able to send us their request, and we then conduct the search for them, leaning on our strong experience and wide network to find them the most suitable mortgage available. 

As well as time saved, this deep network can result in more favourable interest rates and better terms. Not to mention, the experience a broker brings can prevent businesses from falling into common pitfalls, such as entering into an agreement unaware of hidden fees and charges. 

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How to find the most suitable self build mortgage broker

When looking for the broker who will best look after your needs, here are some things to watch out for. 

Understand what you really want

Is there a certain interest rate you don’t want to exceed? Do you want the finances staggered over a very specific period? Do you want to repay the loan quite quickly? Consider your unique circumstances and ensure you’re going into negotiations with a clear picture in mind. 

Create a selection

Find a pool of brokers who best match your needs and narrow them down based on the terms, interest rates, and fees they usually help facilitate. You may also choose to consider their reputation. Have a look at any online reviews and ask around to see how they treat their current clients. If you’re considering Funding Options by Tide as a broker, you can find our case studies here.

Ask the right questions 

Once you’ve narrowed down your selection, it’s time to put forward some questions to your chosen broker to ensure they’re the right team for you. You might like to ask them: 

• How many self build mortgages do you facilitate a year? It’s unlikely they’ll be able to give you a number, but you’re trying to work out how accustomed they are to this process 

• How do repayments usually work for your clients? 

• How many lenders do you work with? 

• How much experience do you have with self build mortgages? 

• How do you charge? Here, you want to find out if they charge upfront, or if they’re fee-free, or if they charge-based on a percentage of the loan. Then compare those amounts by broker 

• How will you find the most suitable deal for me?

• Will you support me throughout the process?

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Find a mortgage with Funding Options by Tide

Are you a business looking to fund your self build project? We help eligible businesses find commercial mortgages, semi-residential mortgages, and a range of other financial services. Just click the link below and submit your information to find out if we can connect you to our network of over 120 lenders offering up to £20M. 

Find a commercial mortgage.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.