A New Approach to Self-Building
People who want to build their own properties will now find the process easier thanks to the support of a new system. This will also offer more help to councils that have land they want developing and reduce the risk of problems caused by lack of finance.
The Custom and Self-Build Scheme (CSB) is operated by Capita Asset Services. It will provide authorities with more control over the land they release and guarantee that the money will be in place to finance the project. There have been issues in the past, especially for one-off developers, who have struggled to get the right type of finance. Mortgages provided for self-build projects are generally offered through staged payments, which means the funds are not always in place to pay for thins, including building contractors or steel fabricators.
Accessing the New Scheme
With the help of the CSB, those who want to build their own property will find it easier to get access to the right type of mortgage. They will need to be in one of those areas taking part in this scheme and apply for a mortgage. The first lender offering such loans is Lloyds Banking Group. Once the mortgage has been agreed, the deposit will be transferred to the relevant local authority directly. These self-build mortgages are available with deposits from only 5%, opening up the market to a wider range of people who want to build their own home.
The build is then financed through the authority until the project has been completed. This means that they will cover the costs of everything from paying suppliers such as builders and steel fabricators to financing equipment and supplies. As the finances are already in place, the local authority can take on the project with very little risk. The mortgage will be released at the end of the work, which will enable the local authority’s costs to be repaid. The homeowner will then make their mortgage repayments as they would with a traditional loan.
Creating More Homes
Through the CSB, it is hoped that additional support will be provided for those who have the dream of building their own home from scratch. It will also enable local authorities to release more of their land for development without increasing their financial vulnerability.
With the self-build market opening up, it will help the country address the housing shortage. Even with the construction industry growing, there is still a need to increase the number of new homes that are built every year. The estimates are that this scheme could help to build as many as 100,000 self-build properties within a decade.
Self-building isn’t for everyone, but it does offer you the chance to create the type of home you’ve always wanted. Before you start any work on a project of this scale, it is vital that you have looked into all the options very carefully and considered exactly what you can afford so that you don’t spend money unnecessarily.