Construction Loan

Let us help you build your dream home with an easy-to-manage Construction Loan. When you take out a construction loan it works a little bit differently to a normal home loan.

With a normal home loan the money is generally drawn down or paid to the vendor in one lump sum. With a Construction loan the money is drawn down at various stages. Normally the first stage will be for the land, then as per the building contract in a series of 5 progress payments to the builder. These payments are made upon completion of each stage of construction, in line with the progress schedule and the building contract. With each payment the lender will make an inspection to ensure the agreed work is completed. It is important to note that you only have to pay the interest on the amount that has been drawn down until construction is complete. It then reverts to the principle & interest repayment after the final progress payment is made. This helps you pay the rent, or existing mortgage payments whilst your new home is being built.

For more information please see "Building a Home"

Standard Variable Loan | Basic Variable Loan | Line Of Credit Loan
Fixed Rate Loan | Construction Loan | Low Doc Loan