Self build mortgages have been around for a number of years, offering finance for the ‘yet to be built’ with features such as lending on the land (so you can keep your savings back for the build) and releasing funds in stages, as the build progresses, so you don’t have to borrow the whole amount from the outset and pay interest on it all from day one. These mortgages are not just limited to brand new projects, and can be integrated into a conversion of an existing property.
If you’re considering building a home and using a Modern Methods of Construction (MMC) technique, you may be wondering what options you have and how mortgages for MMC work.
Firstly, MMC is seen as the new generation of prefabricated housing but vastly different to the prefabs used to rebuild housing stock following the Second World War. MMC schemes are being used by both developers and owner-occupiers who could benefit from the cost and time savings of mass production, but retain flexibility and control over their build.
The government is keen to support MMC in order to address the UK’s chronic shortage of housing. The Autumn Budget 2017 said “the government will use its purchasing power to drive adoption of modern methods of construction, such as offsite manufacturing” and the Office of the Deputy Prime Minister and the Housing Corporation stated it is “… a process to produce more, better quality homes in less time.” Continue reading %s