How self-build loans are sized
Lenders limit self-build loans to a share of the land value and the build costs, and release money in stages as each phase is completed and checked. They'll want detailed plans, costings, planning permission and building regulations approval.
Worked example
If the land and build are worth £400,000 together, at a 75% limit you could borrow up to about £300,000, funding the other £100,000 yourself.
Before you apply
Approval also depends on your income and the project's details.
Approval also depends on your income, plans and costings, and the lender decides, so treat this as the most a lender might offer.
How the result is worked out
The extra you could borrow is the combined land and build value multiplied by the maximum loan-to-value you enter, minus any borrowing already secured on it. Your equity is the value minus that existing borrowing.
Staged payments mean you borrow gradually, so the figure shows the limit, not what you draw on day one.
Inputs for the construction loan approval calculator
Land and build value
The value of the land plus the cost of the build.
Existing borrowing secured on it
Any loans already secured on the land.
Maximum loan-to-value
The lender's maximum share of the land and build value.
CALCULATOR QUESTIONS
Construction loan approval calculator questions
What do I need for self-build mortgage approval?
Plans, costings, planning permission, building regulations approval and proof you can afford the repayments.
How much can I borrow?
A share of the land and build value set by the lender.
Is the money paid in one go?
No. It's released in stages as the build progresses.
Is this a guarantee?
No. The lender decides.