✓  Maximum borrowing is 4 times your gross basic income if you are a first-time buyer or 3.5 times if you are not. If there are two of you buying, then you can borrow up to 3.5 or 4 times your combined income depending on your status.

✓ Maximum borrowing is 90% of the value* of the house. This is also known as 90% loan to value (LTV).

Please note that these are maximum figures, and it is the lower of the two that will dictate how much you can ultimately borrow. The good news is that lenders have some leeway to accept a lower deposit or to lend more. We can explain more about this when we speak to you.

In the case of a self-build, the property value is typically calculated as the lower of:

• the site purchase cost (if applicable) plus build costs 
• the final valuation upon completion

Because your site is a valuable asset, it can be considered all or part of your deposit by the lender. You will need to get the site valued to confirm exactly how much it is worth. It is advisable to have full planning permission for the site if you are hoping to use it as your deposit – it’s all about reducing the risk for the lender.

If the site has been gifted to you, we may need a signed letter from the gifter confirming this.

Where the site is gifted by the parents or a family member of one applicant, or has been acquired by one applicant, you can still apply for a joint mortgage – it is called a joint mortgage sole title application.

A self-build mortgage differs from a regular one in that the funds are released at certain phases in the build to enable you to get to the next point. This has the advantage that you will only pay interest on what you’ve drawn down. 

The phases differ slightly from lender to lender but in general they are:

1. Foundation stage
2.  Wall plate

3. Roof on and windows and doors fitted
4. First / second fix
5. Completion

At each stage your engineer will complete a stage payment request form. This is sent to the lender and the funds are released to your solicitor’s account.

There are generally three valuations to be done during the course of the build:

1.  Prior to the start of the build or at foundation stage
2.  When the house is sealed ie the roof is on and windows and doors are fitted
3.  Completion  – This is important! The lender will retain the last tranche until it has confirmation from the valuation report that the house is completed.

SYS charges a fee to cover researching the best lender for you, helping you prepare the mortgage application and looking after your application from the initial enquiry right through to submission. This is payable when we submit your application to the chosen lender. This information is available in our Terms of Business.