A construction mortgage may be just what you need to build the house of your dreams if you are one of those who do not find anything ready-made exciting enough. As the name rightly suggests, a construction loan enables you to construct an entire home from the ground up whilst allowing you to borrow money from a lender in pre-scheduled installments to finance the same.

You may purchase freehold land, design your new abode, and build it as planned with a construction mortgage. However, in sharp contrast to conventional home loans, construction mortgages are known to vary significantly in terms of availability as well as tenure. Also referred to as builder’s loans or draw mortgages, the latter type of financing is purpose-created to serve a short-term objective, such as developing a new residential property. On the contrary, characterized by a lower interest rate and a longer repayment term, the former type of loan is ideal for houses whose construction work has already been completed.

The majority of lenders will finance as much as three-fourths or 75% of the total cost to construct the house and you will be accountable to pay for the rest. As long as you possess the necessary experience and the required expertise to design as well as develop residential property, you may secure a self-build construction mortgage and build your house on your own, which means you will not need to involve a builder, general contractor, or real estate developer in the process.

Call us now for any queries or further information on how you may benefit by obtaining a construction loan from Royal King Mortgages!