Self build mortgages are sometimes also referred to as stage payment mortgages. These are designed perfectly to meet the needs of home builders throughout the whole process, from the acquisition of the land right through to completion.
With this type of mortgage, funds are released in staged increments, either in advance or sometimes in arrears depending on the lender. While the stages may vary between lenders, it’s common for these stages to include an initial payout for the land purchase, and additional installments when other milestones are reached during the build.
A specialist self build mortgage broker will be able to help you find the right provider who offers a payment schedule that suits your requirements.
If you were to approach the lenders directly yourself, they can only discuss their own products which will restrict your decision making. Even though self builds are a nich mortgage type, there is still plenty of choice and finding the best deal for your needs requires specialist help.