A self-build mortgage operates in a similar way to a drawdown mortgage. Instead of receiving the entire loan upfront, you gain access to funds in stages that align with different construction milestones. While drawdown mortgages are designed for those nearing retirement, self-build mortgages cater to individuals constructing their dream homes. Here are some common stages of drawdown for a self-build mortgage:
Before purchasing the land.
When the foundation is ready to be laid.
When the walls are constructed up to the roof level.
When the property is made windproof and watertight.
When the first fix and plastering are complete.
When the property is finished with the second fix.