Can I Get a Self-Build Mortgage for 2 Properties?

Answered on 13 February 2016

I am planning to build a pair of semi detached houses on land I own. We will live in one house and either rent or sell the other, depending on market conditions. Can I get a self build mortgage to fund the overall development?

Potentially, the answer is 'yes', although this depends on a number of factors. These include your previous (if any) development experience, your personal incomes, the cost of the build and the cash that you are putting into the development.

You would need to show that planning permission has been granted, architect’s plans and a breakdown in build costs. Development finance isn't always the easiest to place, and the complexity often means it's better to have an experienced mortgage broker to position your case in the right way to the right lender.

Read more about development finance

Your other option would be to split the title of the plots, to do a self build on the property you intend to live in, and a development loan on the other. Once the second is built you could then either sell it or remortgage it onto a buy-to-let.

If you would like to discuss this in more detail then please contact one of our mortgage experts on 0330 433 2927.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.