A clearer view of
the full commitment.

At the initial stages of any homebuilding project, finance is often a stumbling block. Many self builders are unsure of their options. Understanding the funds you have available early helps align the design with your budget.

There are a number of ways to finance a Microhome. We have partnered with BuildStore Mortgage Services Limited, a specialist mortgage broker for homebuilding projects. Its advisers can recommend borrowing solutions tailored to your circumstances, design, specification and payment schedule. BuildStore understands offsite manufactured structural timber frames and the way Microhomes projects progress. Its relationships with lenders have led to more than 70 specialist mortgage products designed for individual homebuilders.

How do self-build mortgages work?

Self-build projects are paid for in stages, so self-build mortgages release funds as work progresses rather than in one payment. The two principal types are valuation-based and cost-based. The way a lender determines each release has a direct effect on project cash flow.

Valuation-based mortgages

Funds are released after each stage is complete, based on a lender’s assessment of increased value. The amount available at the next stage is not fixed in advance. These deals may suit a traditional build with more evenly spread costs, a plot you already own or additional cash reserves.

Cost-based mortgages

Stage releases are agreed against your build costs. Depending on the deal and schedule, funds can be released before or after a stage. BuildStore offers cost-based stage payment products suited to timber-frame systems, where a substantial payment may be due before the building arrives on site.

How much can you borrow?

Any lender will assess income, spending and affordability. The original Microhomes finance guidance says valuation-based funding is typically limited to 80% of the lender’s assessed site value at a given point. BuildStore says eligible applicants could borrow up to 95% of land and build costs, or 100% of build costs if they already own their plot, subject to a maximum of 85% of the expected end value. Individual eligibility and product terms must be confirmed directly with the adviser.

The BuildStore difference

• Specialist self-build knowledge and lender relationships
• Competitive rates and exclusive products
• Potential interest-only payments during the build
• Cost-based stage payments aligned with construction costs
• Potential to stay in your current home until completion
• Cash flow tailored to your build and payment schedule

Speak to BuildStore on 0345 223 4888 and quote “Microhomes”, or use the enquiry below. Finance is subject to status and lender criteria.