Can You Get a Mortgage for Your SIPs Self-Build Home?

Looking for SIP construction mortgage for your new home and wondering where to start?

If you’re new to the world of Sips self-builds, it can seem a little daunting trying to figure out how to best fund your new dream home.

Perhaps you’re worried about going from lender to lender, and being turned away everywhere you look. If so, you needn’t be. 

Due to SIPs being a recognised standard method of construction, it’s actually a lot easier than you might think to get a mortgage for your SIPs self-build home.

As a specialist SIP supplier with over 35 years’ experience, we wanted to make things a little easier by shedding some light on SIPs mortgages, below – as well as giving you some tips and advice on where to start looking.

How to get a mortgage for your SIPs self-build home

Getting a mortgage on your SIPs self-build home has never been easier. It is now relatively straightforward to find a lender who will provide you with a mortgage to finance your SIPs self-build aspirations.

This is because, as we mentioned above, SIPs are recognised as a standard method of construction, much like timber frame and brick and block are.

But, which sort of mortgage should you choose? Well, it goes without saying that building your own home is very different from just buying a new home. Naturally, this means the type of mortgage you’d apply for would be different.

We would recommend looking into a self-build mortgage.

What is a self-build mortgage?

A self-build mortgage is a unique type of mortgage that releases funds in stages throughout the build process, rather than being released all in one lump sum. This is ideal for self builders, as you will have a continuous supply of cashflow to fuel your project.

One company specialising in funding SIP self-build projects is BuildStore – one of our partners. They offer a cost-based stage payment mortgage which releases funds before each build stage. This is guaranteed to be released based on the costs of the next build stage.

The other benefit of this unique type of mortgage means you will always have the cash available to meet your payment terms.

NOTE: Lending criteria may require you to use approved materials for the outer skin of your build. This helps ensure the building is protected from the elements and maintains its visual appeal.

The two main types of self-build mortgages

There are two main types of self-build mortgages you’ll come across; valuation-based and cost-based. We’ve explained a little more about each below.

Valuation-based

A valuation-based stage payment mortgage is a mortgage that releases the funds after each stage of the build, and after there has been a valuation taken to show the increase in value.

Bear in mind, this method is structured more towards traditional building methods, rather than SIPs.

Cost-based

This is a specialist mortgage method that works exceptionally well when using the SIPs home building system. Choosing this method means you are guaranteed payment based on the cost of your building.

This payment can then be before or after each stage of the build depending on the agreed payment schedule.

Advice from a specialist SIPs supplier

The best advice we can give you is to seek expert mortgage advice as soon as possible – and well in advance of construction – because this will set you up best for the project to come.

A specialist self-build mortgage adviser should be happy to advise and help you explore all of your options. We would highly recommend getting in touch with our partner, BuildStore, for some no-strings advice on this type of mortgage when constructing with SIPs.

TIP: For more information on BuildStore Mortgages, visit the official BuildStore mortgages page.

In summary

We hope you’ve found this article helpful when looking for a self-build mortgage for your SIPs home. It can seem a little daunting when you’re not sure where to start – and that’s probably why you stumbled across this blog during your research.

Remember, if you’re just looking to explore all your options, a specialist self-build mortgage adviser – like our partner, BuildStore – should be happy to help.

If you have any other questions about your SIPs self-build, don’t hesitate to get in touch – our friendly team are always here to help.

Wishing you all the best with your self build!