Might be of interest to someone:

 

'The Scottish Government have provided a time limited fund to assist self or customer builders finance the construction period for their new home.  The fund runs from the 1 September 2018 to 31 August 2021 and is open to applications from individuals who have been unable to obtain mainstream self-build mortgage finance, but who will be able to obtain mainstream mortgage finance upon completion of their project. The maximum loan available stands at £175,000.'

 

http://www.hscht.co.uk/scotland-self-build-loan-fund.html

This was trialled in the Highland and Islands for a few years. I did consider it as a last resort, what put me off was that if your project overuns you pay interest at 9% on the credit provided. You need a mortgage promise at the end when the funds are repaid to the Scottish Government, but some lenders don't provide to properties less than six months old and what happens if the mortgage promise falls through?

 

You are also then jumping through two sets of hoops in order to get your eventual finance for the building and might have to get expensive structural warranties to meet both lending criteria. 

 

It seems to be better suited to building a house like this where project is run by a single contractor or a fixed time frame.

 

http://www.ruralhouse.co.uk/

 

However this then results in a proportion of the build costs being paid to the builder's profit. Therefore inflating the build costs and making it harder for first time buyers like me to obtain a mortgage. 

 

I did have high hopes for this scheme when it was released a few years ago but was disappointed ?

 

There are self build mortgage provider out their but because of the 'stress' testing on mortgage applications these can be difficult for younger borrowers to obtain. 

 

The principal aim of government is to put young families like mine in poorly constructed developers built houses in cities/town which are built principally on the motive of profit rather than quality for the user. 

Edited September 15, 20188 yr by Thedreamer

Like a lot of schemes, helpful if you can meet the criteria, but frustrating (probably for a great many people) if not.  Not a terribly large fund either so one could question whether they are serious or are providing just enough to show they are doing something.

In most areas of the UK, the impression I have is that self building is viewed by government as being an luxury or some think unusual. Government and local authority right to build etc is pretty pathetic it would be better of government adopted the European view of self building as being a really option and offered some proper support.

 

As an example when the Help to Buy ISA was opened, self builder that already owned their plot do not qualify for the saving bonus, in our case we did not qualify even those we never actually owned a building and were living with parents to save money for a mortgage. 

 

I see a lot in self build magazines about Graven Hill in England but I bet this is un-affordable to most families on average incomes in the UK.

 

Help buy for first time self builders in the UK could follow the Irish model which at least provides some help to self builders, although I believe VAT reclaim rules are limited there.

 

https://www.revenue.ie/en/property/help-to-buy-incentive/how-much-can-you-claim.aspx

 

Sorry rant over. Just took a long time for us to get where we are now and feel sorry for any young people starting off on the self build route.

I signed up for the right to build vanguard scheme in Sheffield. The council made available some scrappy bits of land that I wouldnt build a kennel on, so I abandoned that idea.

6 hours ago, Stones said:

Might be of interest to someone:

 

'The Scottish Government have provided a time limited fund to assist self or customer builders finance the construction period for their new home.  The fund runs from the 1 September 2018 to 31 August 2021 and is open to applications from individuals who have been unable to obtain mainstream self-build mortgage finance, but who will be able to obtain mainstream mortgage finance upon completion of their project. The maximum loan available stands at £175,000.'

 

http://www.hscht.co.uk/scotland-self-build-loan-fund.html

I wonder if that would be available for someone who does not WANT a mortgage, and in a few years will have a lump sum available that will be able to pay off the loan in full.

 

Certainly no main stream lender seems to offer a product for this situation.

As the scheme has a relatively small fund to operate from, it would prioritise those who need it most i.e one who can't get mortgage finance. 

 

I think you had to demonstrate that you couldn't get mortgage finance. I downloaded the application and went for a chat with HSCHT in Inverness. It's a good organisation and I believe they act as administrators for the scheme and it's the Scottish Government that decide how it works.