Stage vs arrears release
Stage release (in advance): funds drawn at the start of each phase, suitable for cash-light builds. Premium 0.5-1% on rate. Arrears release: funds drawn after each phase certified complete, suitable where the homeowner has bridge cash or savings to fund each stage. Cheaper but cashflow-tight.
Active lender panel (2026)
Buildstore is the dominant broker[Buildstore], with BuildLoan-branded accelerator products. Direct-access lenders include Hanley Economic, Newcastle Building Society, Loughborough Building Society, Mansfield Building Society, Furness, and Darlington. Mainstream high-street banks do not lend on self-build.
Typical 2026 rates
2-year fixed self-build at 5.85-6.65%, 5-year fixed 5.45-6.20%, against Bank Rate of 3.75% at June 2026 MPC[BoE Bank Rate]. LTV typically max 75% of post-completion value; arrangement fees £1,995-£2,995 typical. Conversion to a standard residential remortgage on completion is the usual exit.
Site insurance + structural warranty
Most self-build lenders require: site-insurance during the build, public liability cover, and a 10-year structural warranty (NHBC, Premier Guarantee, LABC New Home, or Build-Zone) before final drawdown. Allow £1,500-£3,500 for the warranty premium.