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New Build

Building and Construction Lending

When talking building and construction there are four different scenarios;

  1. Renovations to an existing property
  2. Turn Key Builds
  3. New Builds managed by a building company
  4. Self-Managed Builds

Whichever type of building or construction path you are planning to take we are here to help you understand the process.

Renovations to an existing property

Thinking of adding an additional room on to your house or extending the patio?

Many small or large renovations will require consents from the council your builder will be able to advise you of this information. Every renovation is different and exciting at the same time!

Always with any ideas you have, chat to The Mortgage Girls first on 0800 864 864 we can get your lending approved before putting the leg work in for your plans to ensure everything is ready to go once you have your plans set in place!

Turn Key Builds

With turn-key builds you usually pay a deposit up front upon approval of contract then the balance on completion of the build.

The advantage of a turn-key build is that you do not have to make progress payments and cover the mortgage whilst building, which makes it easier for you to continue your existing rent or mortgage repayments whilst the build is being completed, you also end up with a brand new house at the end of the project.

Many building companies have turn-key packages on offer at a fixed price arrangement.

If you are thinking about heading down the path of a turn-key build contact The Mortgage Girls today we can sort a pre-approval for you in advance to ensure you shop with in your price range.

Builds managed by a building company

First things first it always pays to chat to your Mortgage Broker first when building to work out a budget to ensure you can afford the repayments on a building project (allowing for any potential over runs) before proceeding with any plans, as criteria with banks is slightly different to that of purchasing an existing property.

Once approved for the lending the next step is to start searching for land, depending on where the land is located a Geo Tech report may be required by the bank.

Once you have found land it then pays to chat with your building company and ensure your vision for the land is possible. (Do your research on companies and find the best one that suits you, alternatively we can refer you to a building broker.)

Once your plans are designed and consented the build will be able to proceed so long as it is within approved budget, a good project manager will keep you informed of progress along the way – it does always pay to request regular contact/updates on your build.

Often builds will work with progress payments, your lending will increase as the build progresses ensure you have money in the bank to make the repayments. Note: Often the bank will not pay out the final 5-10% of lending until a completion certificate and/or consent is granted.

Building can be very exciting and daunting at the same time, we have managed many builds and some of the team have built personally we love sharing our experiences and would love to help you with your project!

Self-Managed Builds

First things first it always pays to chat to your Mortgage Broker first when building to work out a budget to ensure you can afford the repayments on a building project (allowing for any potential over runs) before proceeding with any plans, as criteria with banks is slightly different to that of purchasing an existing property.

Once approved for the lending the next step is to start searching for land, depending on where the land is located a Geo Tech report may be required by the bank.

Once you have found land you will then need to get a plan drawn up in order to obtain all the costs and quotes to complete the project with in your approved lending budget. Then once your plans are consented the build will be able to proceed.

Often builds will work with progress payments, your lending will increase as the build progresses ensure you have money in the bank to make the repayments. Note: Often the bank will not pay out the final 5-10% of lending until a completion certificate and/or consent is granted.

Building can be very exciting and daunting at the same time, we have managed many builds and some of the team have built personally we love sharing our experiences and would love to help you with your project!

For a friendly obligation-free information call, phone 0800 864 864

We look forward to hearing from you.