The clients required £1.5 million of self-build finance to fund the construction. However, they also wanted to retain their existing family home for the time being, which still had an outstanding residential mortgage.

Core Challenge

This created a significant challenge:

• Many lenders assessed the application based on traditional income multiples and struggled to accommodate both the proposed self-build borrowing and the existing residential mortgage simultaneously.

As a result, several lenders were unable to offer a viable solution despite the strength of the overall project.

Our Approach

We took the time to fully understand the clients' wider financial position, including their substantial savings and clear strategy for repaying the self-build borrowing.

Rather than focusing solely on standard income multiples, we approached specialist lenders capable of taking a more holistic view of the application. We presented the strength of the project, the significant equity already held in the land, the projected end value of the property, and the clients' planned repayment strategy.

The Solution

After extensive lender research and negotiations, we secured a £1.5 million self-build mortgage with a highly competitive interest rate.

A key factor in achieving approval was demonstrating the clients' strong overall financial position and clear repayment strategy. The lender was comfortable that the clients had sufficient savings to service the monthly interest payments throughout the anticipated 18-month build period, reducing reliance on earned income alone.

In addition, a clear exit strategy was established from the outset. Upon completion of the new property, the clients intended to sell their existing residence, with the sale proceeds being used to repay the self-build facility. While affordability and income were still assessed as part of the underwriting process, the lender was able to take a broader view of the clients' assets, liquidity, and overall wealth position.

Outcome

Build project able to proceed without requiring the sale of the clients' current home before construction commenced

Key Takeaway

Complex self-build projects often fall outside standard high-street lending criteria. By understanding the full financial picture and working with specialist lenders, we were able to secure funding that many providers had declined, allowing our clients to move forward with confidence while retaining their existing home and lifestyle.