With a custom build mortgage, your clients will be purchasing a house and paying for it in stages, which means they’ll require specialist mortgage to pay for it.
Custom build mortgages differ from those for self build
A custom build home is built on a site that has been divided into multiple plots. The plots come with all of the services and infrastructure in place, ready to build on, speeding up construction times and decreasing costs.
Your client’s custom build home will be facilitated by a developer and there are various routes to custom building a home with different levels of involvement. Whatever route your clients choose, they will be purchasing a plot and entering into a building contract which means they’ll require specialist funding.
TYPES OF CUSTOM BUILD HOME
Your clients’ plot will be fully serviced and ready for them to build on. They will be able to coordinate the delivery of their home including design and construction to save money, or they can work with professionals who will delivery their customised home.
Buying a Golden Brick plot can be a simpler way for your clients to design and build their own home. The developer takes care of all of the below ground works for them and the price includes additional benefits.
Self Finish Homes
Often a preferred route for urban developments. Clients can purchase a plot and the superstructure of their home will be built to wind and watertight shell. This can be an apartment space, a duplex or a unit within terraced housing. This enables your clients to coordinate the delivery of the internal fit out and decorating.
Land & Build Package
Your clients will be purchasing a plot and working with a developer to agree their preferred house design and specification. The developer will then deliver their completed new home to the them.
This is where the developer has a choice of pre-approved house design that have a range of customisable elements. Once your clients have chosen their preferred options, the developer will build their home and deliver it to them.
Paying for a custom build home
With custom build, your clients are purchasing a house and paying for it in stages – typically four or five – as it is built for them. The first payment will be for the plot, with the remainder at pre-agreed stages throughout the build.
A cost based stage payment mortgage with guaranteed stage releases tailored to suit your client’s fixed payment schedule is most suitable for custom build.