Understanding Lender Requirements for Self-Build Mortgages

Lenders have specific requirements for self-build mortgage applications that self-builders must prepare for. Applicants typically need to provide a deposit, usually around 25% of total costs, along with proof of these funds through bank statements, which should cover the last three months. If the deposit involves a gift from family or friends, a formal gifted letter is required to confirm that the giver has no interest in the property and that repayments are not expected. This ensures transparency in financing, reducing the chances of delays later in the process.