Financing your self-build has always been one of the challenging things about building your own home.
Now there’s a new option that will make self-build possible even for those without a big deposit.
The details of the Government’s eagerly-awaited Help to Build Equity Loan Scheme have finally been released. Applications should go live this Winter.
The government-funded loan scheme will allow those with a 5% deposit towards the estimated costs of their land + build to go ahead with their plans, rather than having to wait till they’ve saved a more sizable sum.
Unlike the Help to Buy scheme on which it is based, which was amended to only apply to first time buyers, the Help to Build scheme will not be restricted.
Successful applicants will be able to borrow against projects of up to £600,000 total value of land + build cost, with the Government supplying a 20% equity loan (40% in London). This will be interest free for the first 5 years, and the rest of the funding will come through a mortgage from a provider registered with the scheme.
The Darlington Building Society has been announced as the first lender to sign up.
Help to Build will support what they call ‘custom build’ (like our turnkey service), shell build, and true self-build options.
For more information, you can check out the NSBRC’s summary at https://www.nsbrc.co.uk/news/help-to-build-prospectus-launched-download-and-register-your-interest-today/
Or for full details of exactly how the scheme works, and useful links to other help that is available, click on https://www.gov.uk/government/publications/help-to-build-making-building-your-own-home-more-affordable/help-to-build-equity-loan-prospectus-accessible-version