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Self Build Mortgages in Scotland

Everything you need to know about self build mortgages if you live in Scotland

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 18, 2021

We get a lot of enquiries from people who are looking for a self build mortgage in Scotland and would like to know more about how they work.

Once you’ve read through the details below, make an enquiry and we can arrange for an advisor we work with to speak with you in more detail about self build mortgages in Scotland. You can also get an overview of self-build mortgages from our hub article.

Can I get a self-build mortgage in Scotland?

Yes, this could absolutely be possible. While there are fewer lenders offering self-build loans in Scotland compared to England and Wales, the whole-of-market brokers we work with have access to mortgage providers who specialise in self-build north of the border.

What’s more, there are government schemes which could help you out if you’re planning to build a residential property to your own specs in Scotland. Read on to find out more or make an enquiry to speak to an expert over the phone today.

Do Scottish self build mortgages differ from other parts of the UK?

No, not at all. A self build mortgage in Scotland works exactly the same way as one in England, Wales or Northern Ireland. Whether you’re looking for a self build mortgage in Aberdeen or Inverness the application process will be identical.

Self build mortgage lenders in Scotland, just like the rest of the UK, will usually only offer this type of finance  on the understanding you have the means and expertise to either build a home yourself or be able to supervise its construction.

If you don’t feel you have the expertise, don’t panic! Lenders will also consider your mortgage application if you are intending to hire a contractor or building expert to manage the construction work on your behalf.

Scotland Self-Build Loan Fund

Available until 2021, the Scotland Self-Build Loan Fund is administered by the Scottish Government and offers loans up to £175,000 specifically to cover construction costs for a self-build property.

You are able to apply if:

  • You can prove you’re unable to access standard bank lending for this purpose
  • You own a plot of land or have a contract to buy the land
  • You have planning permission and a building warrant already in place

If you’d like to know more about this offer you can read more on the official government website here

How do I find a self-build mortgage broker for Scotland?

Simply make an enquiry – the experts we work with are whole-of-market, so if there’s a self-build mortgage deal that you qualify for in Scotland, they’ll find it.

If there is a key difference between Scotland and the rest of the UK it’s likely to be the number of lenders who offer self build mortgages may be much less than, say, England and Wales.

In addition there may be a number of postcode restrictions put in place by certain mainstream lenders due to a lack of knowledge of the local market further impacting on the availability of self build mortgages in Scotland.

This means that the number of approachable lenders will be even fewer if you’re planning to build in an area such as the Highlands or anywhere away from the mainland.

Rather than trying to scour the market yourself, it may be wiser to use a self build mortgage broker who is knowledgeable about such lending products, their availability and who will be able to adopt a ‘whole of market’ approach to locate the best deals for you.

We work with a number of advisors throughout the UK who are all specialists in their respective local markets. For example, if you need a self build mortgage in the Highlands, we will be able to find you a local expert who can assist.

If you need a mortgage for a self build property in Scotland all you need to do is make an enquiry and we can arrange for an advisor, based near your area, to get in touch.

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Do I need planning permission for a self build mortgage before lenders in Scotland will approve my application?

Yes, you will need to get planning permission in advance from your local council to let you build on the land before any lender will agree to a self build mortgage.

In Scotland, a council’s decision is based on the local development plan and will cover:

  • What the development is to be used for (a home)
  • The size and external appearance
  • What infrastructure is available (roads and water supply)
  • Landscaping requirements
  • Environmental requirements

In addition to planning permission, you will also need to apply for a building warrant to ensure your property meets all appropriate building standards. If you’d like to know more about this process take a look at the official government website here

Speak to an expert on self build mortgages

Building your own home, regardless of its location, can be quite a complex affair which requires a lot of planning and understanding of the process involved. Lots of people in your situation seek professional advice to assist them before making a final decision.

If you have questions and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry

Then sit back and let us do all the hard work in finding the mortgage advisor with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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