Building your own home is a huge accomplishment. However, it is a massive task and you should be well prepared for it before you commence the project. Here are a few questions that will help you chart out a good direction for your self-homebuilding project.
How much savings will I need to start building my own home?
You can start building a new home with comparatively quite low savings. However, a systematic mortgage plan like the self build mortgages can help you start a project immediately even if you have very low savings or your funds are tied up and you are low on liquid cash.
Should I plan to sell my current home before starting the new building process?
This depends on your choice of financing. If you are choosing a mortgage plan where the tranche of money is released after the completion of each of the steps of your self-building process, then you will need some cash ready to pay for labor costs and make a down payment on the land. However, if you choose a self-building mortgage that pays the arrears in advance, you will not need to sell your current home even if you do not have much savings.
Are there multiple mortgage options available for my situation?
With the current market situation in mind, you mortgage options can be varied but the final decision will depend on your individual circumstance. You should compare different mortgage options depending on their interest rates, repayment plans and fund release structure. If you are building the house or property with the intention of flipping it for profit or subletting it for income, you can also look through the buy to let mortgages for better interest rates. Compare a variety of plans before you make a decision.