Self-build mortgages
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With our Self-build mortgages, you can apply to borrow up to 95% of the final value of the property or 95% of the total costs of the project – including purchase of land/property – whichever is lower. And to keep your cash flowing, you can opt for stage payments.
When working out your budget, we also normally suggest you build a 10% contingency into your costings. This usually avoids any re-negotiations at a later stage when the project is up and running.
Our Self-build and Renovating mortgages have variable rate loans. So you can take advantage of low interest rates, although your repayments could also increase if interest rates rise. Please see the ‘Homebuying guide’ for more details, which is available at any Lloyds TSB Scotland branch.
How it works
Our Self-build mortgage works like a normal Lloyds TSB Scotland mortgage, except that the money is paid in stages as work on your property progresses. Payments are normally made at the following key stages:
- When conveyancing is carried out in respect of the land or property.
- When foundations are in place with mains services connected, and if applicable, kit erected.
- When the property is wind and watertight.
- When the property is complete and ready for occupation.
We will need to send valuers to inspect and pass the property at each of these stages before a payment can be made, and the property must also be appropriately insured while construction work is being carried out.
No Mortgage Indemnity Guarantee fees
Lloyds TSB Scotland has abolished Mortgage Indemnity Guarantee (MIG) security fees on all mortgages. That means that if you’re borrowing over 90% of the value of your home, you could save almost £2,000 on a £70,000 mortgage. Add on the interest you’d pay over the next 25 years and you’ll see that you can substantially reduce the cost of your home before you even start building.
Cover yourself
After you’ve made such a big investment, it’s essential to protect your home with suitable insurance. There are several kinds of home insurance you may need to think about, such as:
- Buildings and contents insurance – provides cover for both the building of your home and your belongings against a wide range of risks such as fire, theft and storm. (We require that you take a buildings insurance policy over the property which is acceptable to us.)
- Mortgage repayments insurance – protects your monthly mortgage repayments if you can’t work because of an accident, illness or unemployment.
- Life assurance – repays your mortgage should you die.
- Site insurance – protects you against claims should any visitors or contractors injure themselves while on your property.
Our mortgage advisers can help you work out what insurance options you should consider for your situation and tell you about the policies we offer.
How do I apply?
To apply or to find out more about our Self-build mortgages, make an appointment with one of our mortgage advisers at your local Lloyds TSB Scotland branch.
To help us tailor your self-build mortgage to fit your needs as closely as possible, please take the following information, if available, to your appointment:
- Details regarding the cost of the land or property.
- Formal estimates for the cost of the building repair work.
- Full details of your Builder or Architect. The Builder you choose must be registered with either NHBC or Zurich Municipal Newbuild. Or your build must be supervised by an Architect who must provide evidence of a professional qualification.
- Full planning permission and building regulation approval documentation.
- A copy of the ‘In Course of Construction Insurance’ policy to be used.
- Confirmation of your own financial resources, such as evidence of a savings balance or passbook, which will be required to complete the project.
If you have any other information about your building plans available, please bring it along with you.
To make an appointment, come into a branch or call us on 0845 307 3074.
Lines are open 9am to 5pm, Monday to Friday.
By phone
Call us on 0845 307 3074*.
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Call into your local branch for a free consultation with a mortgage advisor.
