Over two-thirds (69%) of potential self-builders do not know that mortgage lenders will allow them to borrow to purchase land where planning permission has been granted, according to research from Suffolk Building Society.
Correspondingly, concern over financing a project was the number one barrier for those interested in self-build: other concerns were around seeking planning permission and difficulties in finding suitable land.
In response to the findings, the society said that the lack of awareness about being able to borrow for land may discourage people from considering self-build.
Many incorrectly believe they either need to be sufficiently cash-rich to fund the land themselves before applying for a self-build mortgage or be gifted a plot from land-owning family members.
Suffolk Building Society is aiming to normalise self-build and in doing so, urges brokers to help spread the word that self-build is also a viable option for those with modest budgets.
Its recent research found that over half (54%) of those who are considering a self-build at some point in the future believe that self-build is reserved only for the very wealthy.
Richard Norrington, chief executive at Suffolk Building Society said: “Self-build television series undoubtedly make for great viewing, but they do set the bar remarkably high.
“One could easily assume that self-build is only for those with unlimited time and deep pockets.”
He continued: “Self-build is considered a fairly standard route to homeownership in countries such as Hungary, France, and Sweden, and with better education and awareness from lenders, brokers and the industry as a whole, self-build could become more mainstream here in the UK too.”
