- Our flexible underwriting means we’ll consider your individual circumstances
- Available for properties in Scotland and the North of England
- Loans from £30,000 up to £1,000,000
- Minimum mortgage term is 5 years and maximum term is 40 years
- Applicants must be at least 18 years old and normally not more than 85 at the end of the mortgage term
Building your own home takes plenty of hard work, but it’s incredibly rewarding too. That’s why it’s important to choose a self-build mortgage provider who’ll be there to support you every step of the way. Scottish Building Society can help you with your plans, budgeting and offer advice on many aspects of the self-build project. So you’ll have more time to plan the perfect kitchen you’ve always dreamed of.
Our Self-Build Mortgages are available for properties in Scotland and the North of England. Our Mortgage Advisers can give you help and advice right through your application.
What to consider when thinking about a self-build project
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Planning permission and/or Listed Building Consent
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Estimated build cost
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Total cost overall, including fixture and fittings
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Total loan required and monthly mortgage payments
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Different mortgage lenders will have different lending criteria for self-build projects - be sure to compare mortgages to find the right one for you
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Why choose a Self-Build Mortgage with Scottish Building Society?
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Helps to overcome cash flow problems
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Stage payment arrangements to meet your requirements
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Expert assistance and flexible underwriting
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No bridging loan required
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Payments are released in arrears
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On completion of the build, customers can switch to our other mortgage rates on offer at that time, even within the Early Repayment Charge period
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Key Mortgage Information
Available for properties in Scotland and the North of England.
Properties may be constructed by either: A single build on a fixed price contract, or on an all trades basis under direction of a suitably qualified project manager.
We’ll ultimately lend up to 80% of the self-build project cost or final property valuation (whichever is lower) with a maximum of 60% for the initial release based on the land alone. The value of the land, if already owned and debt free, may be included in the borrower's contribution.
Loans from £30,000
Maximum loan of £1,000,000 at max LTV 60%
Maximum loan of £800,000 at max LTV 70%
Maximum loan of £600,000 at max LTV 80%
Stage payments are released after each section of work is complete rather than one big lump sum. This helps self-builders ensure they have enough money throughout their project.
Below is a typical example of when we'll release funds as the build progresses, but we can be flexible, depending on the type of build and your circumstances:
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Purchase of land (when full planning permission is in place)
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Foundations laid
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Up to eaves level
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Wind and watertight and roof tiled
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Interior walls complete (plastered out)
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Ready to move in
Each tranche of funds is released when confirmation is received from our Valuer that the stage has been completed to a satisfactory standard. If the construction is being supervised by an architect then they will also have to issue an interim certificate. The architect will need to confirm the build is on track to complete within the agreed build cost.
The build must be carried out by a builder registered with the National House Building Council (NHBC). Alternatively, the build must be covered by NHBC Solo or you must employ an architect or RICS qualified surveyor with professional indemnity insurance to supervise the build. You can speak to one of our experienced Mortgage Advisers for full details.
All mortgage applications are based on affordability.
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For loans less than 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:
Single applicant: 4.5 x income
Joint applicants: Main income x 4.5 plus second income x 1 OR Joint income x 4
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For loans over 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:
Single applicant: 4 x income
Joint applicants: Main income x 4 plus second income x 1 OR Joint income x 3.75
As a responsible lender, we think carefully about the amount you can borrow and the mortgage terms that will work best for you.
We'll carry out an assessment of your net income and outgoings to make sure the mortgage is affordable. Any existing financial commitments will also be taken into consideration when we calculate affordability.
The first instalment can be made available when you purchase the land and can be up to 60% of the plot value or purchase price – whichever is lower.
You then have the flexibility to negotiate instalments during the construction period, providing the outstanding loan is not more than 80% of the current valuation or build costs to date, whichever the lower.
When the build is complete and on production of the Completion Certificate we’ll allow a switch to a standard residential product available at that time without any Early Repayment Charges.
The new product may have early repayment conditions. Where Early Repayment Charges apply to any of our mortgages you may be allowed to make overpayments (normally up to 10% of the loan amount per annum) without penalty.
We offer a range of competitive interest rates. Check our interest rates for details.
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Capital and Interest
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Interest only - available up to 75% of the property value. When you apply, we’ll need confirmation that you have plans in place to pay off your mortgage at the end of the term and we'll ask you about your plans occasionally while you have a mortgage with us. Examples of these plans are normally endowment policies; stocks and shares ISAs; pension lump sums; and second/investment properties.
A Standard Security (Scotland) / First Legal Charge (England) will be taken over the property as security for the mortgage borrowing.
If you make overpayments of 10% or more of the loan amount in any 12 month rolling period during the initial period, and depending on which mortgage you have, the charges apply as follows:
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For our 3-year mortgage, you will need to pay a charge equivalent to 3% of the outstanding balance amount in year 1 and 2 and 2% in year 3.
After the initial period, the Society will not make an early repayment charge if you move to Standard Variable Rate and choose to repay the mortgage. However, there will be certain redemption fees that will need to be paid (see our Details of Charges leaflet for more information).
It’s essential you get specialist self-build insurance if you intend to build a new home, or renovate or convert a property intended for occupation on completion and we’ll need evidence of the insurance before releasing funds
What you’ll need for your application
We’ll allocate a qualified Mortgage Adviser to take you through the whole process. They’ll be able to advise which product best suits your requirements by the information you give them.
You can call us on 0333 207 4007 to make an appointment. Our lines are open 9-5 Mon to Fri (10-5 Wed). Calls may be recorded and/or monitored.
We’ll need proof of ID - this can include a passport or a driving licence.
We’ll ask you for 3 months recent payslips and bank statements to confirm your income as your income and outgoings will help us determine how much you can borrow. You’ll need to think about the impact any future rise in interest rates would have on your finances.
We’ll need your consent to check your personal financial data to help us assess your mortgage application so we can complete it as efficiently as possible.
Your Home may be repossessed if you don’t keep up repayments on your mortgage
We're here to help
You can visit us in our Relationship Centres, or call us on 0333 207 4007. Lines open 9am-5pm Mon to Fri (10am-5pm Wed). Calls may be recorded and/or monitored.
Scottish Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Register No 206034)