Unlocking homeownership through self and custom build mortgages 12 MORTGAGE NEWSLETTER By Saffron Building Society Marketing Team The UK housing market is facing serious pressure. The government has pledged to build 1.5 million new homes by 2030, but with only 200,000 delivered last year, supply continues to fall short of demand. Traditional housebuilding methods are struggling to keep up, hindered by planning delays, rising costs, and limited land availability. The potential of self and custom build Whilst it’s a powerful route to delivering more homes, it’s not been used to its potential. The UK builds just 14,000 selfcommissioned homes a year, so barely making a contribution to those all important targets. Our research shows strong interest among younger generations, with 64% of 18–24-year-olds open to the idea of self or custom build. What holds many back isn’t the desire, but the perception that it’s too complex or financially out of reach. That’s beginning to change, and lenders like Saffron are helping to open more doors for borrowers. Mortgage support designed for flexibility Saffron’s self and custom build mortgages are built around real-world needs. We understand that no two projects are the same, and to broaden appeal even further - flexibility is key. Our product features include: • Support for a range of development types, including knockdown and rebuild projects, ground-up construction, modern methods of construction (MMC), and other non-standard developments that may be overlooked by mainstream lenders. • Stage-release funding, with money made available as the build progresses through key milestones, such as land purchase, foundations, and final sign-off. • Maximum loan amount, increased from £4 million to £5 million, to provide more flexibility for larger or more ambitious builds. • Manual underwriting, allowing us to take a case-by-case view and properly assess the borrower’s goals, not just the numbers. • Interest-only payments during construction, helping borrowers manage costs during the build period before switching to standard repayment terms. • Support for a wide range of build types, including timber frame homes, modular construction, eco builds, and renovation or conversion projects. Supporting First-Time Buyers Custom and self-build isn’t just for experienced homeowners or big budget projects. For first-time buyers, this can be a practical way to get on the ladder. Designing and building your own home often works out cheaper than buying a comparable newbuild property, and gives far more control over layout, features, and energy efficiency.
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