Making self-building affordable

Building a property is a significant undertaking and something that seems inaccessible to many, but this is changing. The Government's Help to Build Equity Loan Scheme in England makes obtaining a mortgage for a self or custom build home easier.

Help to Build

Prospective self-builders can build or commission their own home in England with a 5% deposit. Those using the scheme will only need to contribute 5% of the land and build costs from their own funds and then apply for a self or custom-build mortgage of up to 95% of build costs. Through the scheme, self-builders can also apply for an equity loan from the government of up to 20% of land and build costs (up to 40% in London). This loan is then paid to the mortgage lender once the build is completed to reduce the mortgage balance and monthly mortgage payments.

Protecting the self-build project

A lot can go wrong when embarking on a self-build project. The list is endless: theft of essential machinery, bad weather, sourcing skilled tradesmen, unexpected problems with the build, and fire. With the average cost of building a three-bedroom house between £130,000 - £300,000, protecting that investment and minimising unexpected expenses is a priority. Maximising the return on investment involves careful planning from day one.

Protecting an investment with insurance before any work gets underway is a priority for all self-builders. It can help protect against costly unforeseen events, protecting the building budget against the unexpected.

Reducing the risk of expensive mistakes

Self-build insurance can be arranged with a self-build broking specialist. They will understand how to insure a home and explain the difference between a self-build policy and standard home or tradesman insurance.

SelfBuild Insurance provides up to £5M Public Liability insurance, protecting the project against a wide range of risks. Cover also includes £10M Employers' Liability insurance, a legal requirement for those employing people to work on the self-build site. Contract Works cover is designed to protect partly built homes if damaged or destroyed, and cover can range between £50k to £1M, ensuring the home is covered as it starts to have a value. This cover also includes Plant Insurance, Temporary Accommodation, and Personal Possessions cover. View a SelfBuild Insurance Policy Summary to find out more.

Each element of the self-build insurance protects against a different risk.

Public Liability - Protects against third party property damage and injury.

Employer's Liability: Cover if an employee, contractor, sub-contractor or anyone else employed (directly or indirectly) gets injured during the project due to negligence or error.

Contract Works - Covers the project in the event of a fire, floods and other large risks.

Legal Expenses: Pays for legal expenses if things go wrong and provides 24-hour access to legal advice about any issue during the build.

SelfBuild Insurance covers you from the moment building starts right up until completion. Once the building is completed, the policy converts into Home Buildings & Contents insurance until the self-build policy expires. This includes buildings insurance (to the Contract Works value) and £5,000 Contents insurance. Cover durations are available per project so that builders can choose from 3, 6, 9, 12, 18, and 24 months. Insurance is also available for the self-build site before building work starts, with Site Liabilities cover. Different levels of policy excess are available to suit different budgets.

To get a quote click here, or for more information, please get in touch with us at enquiries@selfbuild.uk.com or 0800 230 0225.