The Self-Build is becoming a rapidly growing mortgage market. There was a time when Banks and Building Societies could afford to ignore it as a niche market to be satisfied by a select few Finance Houses and specialist providers. With self-build accounting for 10% or more of new properties the number of lenders has increased in order not to lose out on a significant area of business.

Finding a run down property with a large plot often results in the land being worth considerably more than the existing dwelling. The costs of restoration and the logistics of alteration to the personal uses of the purchaser can mean that once planning permissions are obtained, it is far more satisfying to knock down the old dwelling and purpose build a home to suit. If the size of the plot allows it may be possible to replace a single dwelling with two new homes or to build a new home and then sell the old one.

Self-Build can allow you to have more home for your money. When you buy the plot you pay stamp duty only when the price reaches more than £120,000.00 For example, if when the property is completed it is valued at £350,000.00 and the plot was purchased for £100,000.00 you have made a saving of £10,500.00 in stamp duty, that will probably have been swallowed by a higher quality flooring, bathroom and kitchen fitments etc. than the budget might otherwise have allowed.

Further tax savings are made on VAT, providing the suppliers i.e. builder's merchants and building contractors are registered for VAT purposes, self-builders can reclaim the VAT. There are no developer's costs or middleman fees, all of which adds up to savings of around 30% on the brand new dream home.

There are all sorts of mortgages available to self-builders now, if there is sufficient equity in the main residence, it is even possible to live in the existing home and complete the self-build before selling and moving. (Although building work may make progress at a faster pace if there is urgent need to move out of a cramped and damp caravan or to rescue one's treasured personal effects from a storage facility.)

Self-certification, flexible mortgage payments and acceptance of First Time Buyers all fall into the current self-build mortgage product range. Whilst stage payments made in arrears are still often a current feature, this can be advantageous when making the interest payments.

Costings aside, to plan, design and build your own home to your own specification must provide a great sense of satisfaction, for all the set backs and horror stories of things that can go wrong, it remains a dream for many of us.

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