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Mortgage glossary

Self build mortgages

A self build mortgage, also known as a stage payment mortgage, is a specialist way of taking out a loan on a house that is not built yet.

The self build mortgage allows people to finance the entire cost of building a property, from buying the land to paying the plumbers.

Self build mortgages normally work on a loan to value (LTV) ratio either of the cost of the project or the final value of the home - whichever is lower.

Additionally, in the case of a self build mortgage, the money is released from the lender in stages over the time it takes to build the property, rather than in a lump sum.


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