If you are looking to build your own home in Scotland, you may want a mortgage to help fund the construction. Read more here.
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Getting A Self-Build Mortgage In Scotland
Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Updated: March 15, 2024If you want to build on land you own in Scotland, you may need to borrow money to fund the construction. Here, we look at whether self-build mortgage products are available for this purpose and if they differ from similar loans in the rest of the UK.
We also identify how best to secure this type of mortgage, which lenders could be potential providers, and if the Help to Build scheme could be an option for you.
Yes, they are. However, you may find that the market is smaller than the rest of the UK, giving you access to fewer lenders offering this type of lending. That can impact how much you can borrow because you’ll have less options available, so you may have to accept a product with a higher rate.
Additionally, while not an issue limited to self-build mortgages, many providers have postcode restrictions in Scotland, which can further reduce the number of lenders available to you.
A broker can help identify all possible providers, so you have a wider final selection from which to choose.
Maximise your chance of approval with a dedicated specialist broker
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No – though each lender will have a slightly different set of terms and conditions as part of their mortgage agreement. Differences could be:
For the most part, lenders will need you to meet standard mortgage application criteria such as age and credit score in addition to passing affordability assessments.
However, these mortgages (in Scotland and the UK) will likely come with the following criteria too:
Step one should be to speak to a self-build mortgage broker who specialises in the Scottish market. Make an enquiry with us and we will match you with the right broker for free.
Your handpicked self-build mortgage broker will guide you through the following steps:
We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*
The Scottish Building Society, Mansfield Building Society and the Newcastle Building Society could all be options for a self-build mortgage in Scotland. However, they will have their own specific eligibility criteria which you may or not meet, plus there are other lenders that could be an option for you too. Seeking the help of a broker is, therefore, advisable as their depth of knowledge will be able to identify the most suitable lender for your needs.
Yes, if you are eligible.
That means you will need to show that you:
The Scotland Self-Build Loan Fund is open for up to five years and extends loans to eligible applicants of up to £175,000 to help fund the construction of self-build projects. Those projects can be in both urban and rural areas. These loans cannot be used to purchase the land itself.
Steve, the financial advisor, contacted me within the hour and was very friendly, knowledgeable and professional. He seemed to relish my non standard requirement, diligently kept me updated during the day and we struck up a great relationship. Very impressed.
The team were fantastic and really knowledgeable and supportive. They answered all questions promptly and came back to me with regular updates. I have already recommended them and will use them again.
A very prompt and professional service. The advise and guidance has been so valuable as a first time buyer.
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While getting approved on your own for this type of mortgage is possible, seeking the help of an expert based in Scotland could prove invaluable. Not only can it make the application process easier and quicker, a specialist can also advise on the best lender for you.
That’s important as, with their help, you can ensure you borrow the amount you need despite the smaller range of options, with the best rates you are eligible for. As a result, you minimise your monthly outgoings and make your mortgage repayments more affordable.
Our free, no-obligation broker matching service will connect you with the best self-build mortgage specialist for you. Call us on 0808 189 2301 or enquire with us today so we can put you in touch.
Yes. Planning permission from your local council is required. Their approval will depend on:
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About the author
Pete, a CeMAP-qualified mortgage advisor and an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and his love of helping people reach their goals led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!
CeMAP Mortgage Advisor, MD
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*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us as well as any of our own are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.
Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.
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