Graeme Norris is Regional Manager – Sales and Distribution at Progressive Building Society. Following over 35 years in various roles with the Society, including Branch and then Area manager, Graeme is currently responsible for the development and production of the organisation’s savings and mortgages distribution plans. He is instrumental in the growth of the broker and intermediary network and development of the direct mortgage channel. Graeme is an Associate of the Chartered Institute of Banking and is a keen sports fan.
Talk Title: The Self-Build Mortgage process
How would you go about financing a self-build?
Getting your finances in order is a very important starting point for your self-build project. If you need to borrow money you should be aware that a mortgage for a self-build differs from a mortgage you would use to purchase a house because with a self-build mortgage the money is released in a number of stages as the build progresses. It is also important to make a budget in order to estimate how much the project will cost. You should then add 10% -15% as a contingency sum to cover unforeseen costs which might arise during the build. Also bear in mind that you will have to live somewhere while the property is being built and what this will cost you each month.
At what stages of a self-build is finance usually available?
This can vary from lender to lender. At Progressive, for example, funds can be released after the following stages have been reached – foundations complete, wall plate level, roofed, plastered and final completion.
At what stage should I approach a lender for finance?
We would recommend that you approach your lender before you start on the project even if you may not need to borrow money until later in the build process. This is because lenders need to carry out an affordability assessment in order to check that the mortgage you require is affordable. Your lender will also advise you the stages at which finance will be released and also whether or not the project meets their lending criteria.
What finances do I need to have in place prior to approaching a lender?
Again this will vary from lender to lender. You need to consider what ‘up front’ costs you will have. For example, if you have to use your own finances to purchase the site, how much will this leave you with, bearing in mind that you will probably also have to carry out some building work before your lender advances any funds. It is also useful to have contingency funds of your own to cover unexpected costs.
Why should I choose Progressive to assist with self-build finance?
At Progressive we understand that you are building your dream home and our objective is to help make this become a reality. We have twelve branches across Northern Ireland, each of which has knowledgeable mortgage advisors who are experienced in arranging self-build mortgages and who will work with you from start to finish. Financing a self-build project can be a daunting thought, whether you are ready to start building or even if you are just thinking about it, you can contact your local branch, and we will talk you through the mortgage process.