Order of events self build mortgage

[PSC88]

Hi I’m in the process of collating all my documents/quotes etc before applying for my full self build mortgage application.

 

There are a lot more ‘initial’ costs involved with a self build 

 

ranging from initial costings/QS charges for the build/broker fees etc 

 

ive been quoted 2k for the conveyancing.

 

and then we have approx 10k for the self build warranty.

 

my question is when do I fork out for these costs.

 

will I have a full decision from the mortgage company stating happy to borrow the money? Then engage in spending all these ££££ on solicitors/warranties/insurances?

 

as I don’t want to be out of pocket if the mortgage company say not happy to lend for the project or I need to save more cash for my first stages on build 

[WisteriaMews]

It would probably be best to speak to a self build mortgage broker as they'll be able to offer some advice on your circumstances (e.g. Buildstore - not recommending them, but they are one of the bigger players in the market). The Buildstore website has into on it how the process works too.

 

Generically I'd say:

- I'd hope you can get an in principle mortgage offer without having to pay any fees. 

- Knowing that the mortgage looks 'do able' depending on your approach to risk you could then get a QS / costing to price your build, to know if the house you want is achievable within the amount you can borrow.

- if happy, press go on the mortgage. Conveyancing, mortgage fees, stamp duty etc.... all kick. The mortgage doesn't cover these.

- Once you have the land, you need a bunch of professional services; architect, structural engineer, soil survey, discharging planning conditions, building control, etc... Your circumstances will determine how many of these you'll need (you can never avoid them all). I've not seen a self build mortgage that will release funds to cover these fees.

- In my experience you need to buy the new build before you commence work (as they send an inspector as you go along).

- Unfortunately there are lots of outgoings before you start building!

 

 

[WisteriaMews]

*penultimate bullet point should say "buy the new build warranty before you commence work...."

[PSC88]

Thanks Wisteria

 

i have a broker and we are working through the mortgage application.

 

so far the lender has asked for quotes for warranty etc and solicitor details. They have given me an indication in principle for the lending

 

i just wondered if I’d have a full mortgage before i have to fork out for the warranty and conveyancing etc

 
as no point paying 10k for the warranty and other 2k for the conveyancing and then the bank says no 

 

[Blooda]

Do you need a QS for the build cost? we just sent through a spread sheet with estimates of labour and materials.  We did also get an estimators online estimate as back up.

The lender will send a surveyor round, and they will do a basic RICS estimate. 

 

We used Loughborough Building society, and went to them direct without a broker, to take a cut.

 

[WisteriaMews]

10 hours ago, PSC88 said:

Thanks Wisteria

 

i have a broker and we are working through the mortgage application.

 

so far the lender has asked for quotes for warranty etc and solicitor details. They have given me an indication in principle for the lending

 

i just wondered if I’d have a full mortgage before i have to fork out for the warranty and conveyancing etc

 
as no point paying 10k for the warranty and other 2k for the conveyancing and then the bank says no 

 

 

If they've just asked for a warranty quote, rather than a proof of policy, hopefully you can just give them a quote.

 

Similarly can you just give them a solicitors details, but tell the solicitor not to do any work until you give them the green light.

[DownSouth]

We had to provide a quote for warranty for initial mortgage offer and then demonstrate it was in place before the mortgage went through. Are you building a large house? Our warranty is £4k for 200sqm house through Build Store. LABC warranty quote was £11k. You might want to shop around.

We also had to get site insurance (for full rebuild costs) in place before the mortgage was finalised. 
Lots to pay out before you even start. 

 

[PSC88]

On 10/01/2025 at 21:20, DownSouth said:

We had to provide a quote for warranty for initial mortgage offer and then demonstrate it was in place before the mortgage went through. Are you building a large house? Our warranty is £4k for 200sqm house through Build Store. LABC warranty quote was £11k. You might want to shop around.

We also had to get site insurance (for full rebuild costs) in place before the mortgage was finalised. 
Lots to pay out before you even start. 

 

I’ve had warranty quotes ranging from 10k to 17k! 😩.

I'm building about 500sq metres but this includes large habitable loft space on third floor also.

Warranty is a bit of a minefield, some companies ask for your expected build costs, other add there own valuation to what they think a professional rebuild cost would be (presume some fort of national average square metreage cost) so this also has a lot of variability.

[DownSouth]

https://abi.bcis.co.uk
You can use this calculator to get a ballpark rebuild estimate. Money Saving Expert also has a guide to it.