Self build criteria
Find out all about our lending criteria for self build clients
All additional borrowing applications will be referred to an underwriter for review.
Additional documentation required
- Schedule and cost of works to be provided by the supervising consultant/builder. This should include confirmation that any abnormal costs associated with the site and a contingency of not less than 10% has been factored into the costs.
- Full planning consent, planning authority approved plans and a plan outlining the boundaries of the proposed security and access to and from the development to the highway.
- Confirmation that appropriate insurance is in place during the construction of the property.
Additional self build criteria
All full applications will be referred to an underwriter for review.
Customers can only have one pending Self Build application with Lloyds Banking Group.
Product transfers, term and repayment type changes and Transfer of Mortgaged Property changes will not be allowed until the property build is complete.
Customers can apply for a Self Build mortgage on Interest Only where a suitable repayment vehicle is in place.
Existing Halifax customers cannot port their existing mortgage product on to a self build mortgage.
Additions to loans
The items that can be added on to the loan amount are higher lending charge (where payable) and product fee.
Applications which involve assignable contracts or irrevocable powers of attorney in favour of intervening sellers are not acceptable. Any other structure to the transaction which has a similar effect should be reported to us. Assignable contracts allow the original buyer to sell the property before legal completion, by assigning the contract to buy the property to a new buyer after contracts have been exchanged with the developer.
Loan to Value – Maximum of 75% of the final value of the property and the loan must not exceed the combined costs to buy the land and build the property.
Loan Size – up to £1million (£300,000 for first time buyers).
Stage payments – Funds can be released in a maximum of 5 installments. We usually release the money at the end of the following 5 stages:
- Land Purchase
- Footings and Foundations
- Construction of the walls (Wall Plate Level)
- Roofed In
- Internal/Final Completion
The initial advance can be up to a maximum of 75% of the current value. Where funds are being released for land purchase it must also not exceed 75% of the price of the land paid by the applicant. Where all the land has been gifted the first installment will not be released until footings and foundations stage has been reached.
When the construction reaches the appropriate stages, further releases up to 75% of the current value, less the total amount already released, can be considered. However, for the penultimate stage release, at least 10% of the total loan will be retained, as a final release, until the property is complete and we are in satisfactory receipt of the final completion certificate, irrespective of the ability to release more based on the interim value.
Properties must be for main residential use only. Second properties, holiday homes or properties which will be let are not acceptable.
We only accept Detached Properties.
Refurbishments and conversions will not be accepted.
No usage or occupancy restrictions are permitted.
We will not accept situations where the land is being or has been separated from either:
- Surrounding/adjoining land which is in the ownership of the applicant or their family
- A commercial venture owned by the applicant or their family
No remortgages of properties already under construction.
No applications for properties under construction where the applicant is not the original owner.
Applications may be considered where the customer is acquiring land with an existing property already in situ which is being demolished to make way for a new property. Where this occurs, the supervising consultant/developer must reflect any clearance and/or abnormal costs associated with the demolition within the schedule of work and costs provided.
Where the customer is the original owner and has commenced the build, this may be considered provided the build is not further than footings/foundations level.
The building project must be managed by either a builder or an independent supervising consultant and they must meet our building control and monitoring requirements i.e an acceptable Buildings Standards Indemnity Scheme or meet the requirements for the self build to be 'Consultant Monitored'.
For self build we will appoint our own conveyancer to act on behalf of the Bank and the customer will appoint a conveyancer to act on their behalf. This provides a higher level of security for both us and our customer for more complicated mortgage advances.
There are three firms of conveyancers who have been appointed to act for the Bank in these transactions and the appropriate conveyancer will be appointed based on property location:
- England & Wales – Enact Conveyancing Fax 0344 244 3376
- Scotland – Aberdein Considine Fax 01244 585043
- Northern Ireland – Wilson Nesbitt Fax 028 912 78199
The following should be noted:
- The customer will meet the cost of their conveyancer but we will meet the costs of the firm acting for the Bank.
- The customer must provide details of their conveyancer and be made aware that any offer made will be issued to the Bank's conveyancer and the customer's conveyancer will be contacted directly by the Bank's appointed firm.
- On the rare occasion that the customer chooses one of the firms of conveyancers who will also represent the Bank, the conveyancer will be able to act for both the customer and the Bank with the customer meeting the conveyancing costs of the whole transaction.
- The customer's conveyancer should not exchange contracts until authorised by the Bank's conveyancer to do so.