Having own house in the UK is everyone’s dream. You have two options to make this dream true; either buy a readymade one or build your house by self. Whether you are planning a grand design or want a unique home unit with your own concepts, the increasing British people are opting to self-build the dream home. As the UK Govt. has target of 20,000 custom-built or self-built homes per year by 2020, many legal reforms are being introduced to remove the hurdles that most of would-be house builders face. Most self-build home units have better modest designs but the task is not so easy despite availability of funds.
Self Build or Pre-Build Home – A Comparative Study:
A home is the largest investment you make; it involves not only the money but feelings and emotions also. When someone plans for own home, one perplexing question surely comes to mind, “should I buy pre-built unit or build my custom home?” The decision is tough to make; therefore, it is good to go through some pros and cons of investing for pre built home or custom-built home.
Pros of Custom Home:
- Flexibility in planning allows for introducing the desired alteration any time until the house is in construction stage.
- Custom home delivers the feel of high level personalization. You can select the style or design for every part of house as per living style and future requirements.
- You can build more energy-efficient home for more saving per month for early repayment of loan.
- You can give attention even to minute details for building flawless home.
The Cons of Custom Home:
- It is a time-consuming and engaging task.
- Choosing the best from so many products may be hectic, confusing and tiresome.
- The custom home building cost exceeds to budget in most of cases.
Pros of Pre-Built Home:
- A pre-built home has a time tested designs and styles being liked by the community of recent buyers.
- You would not be surprised to see the same neighbourhood home because they are constructed by same builder/contractor.
- Pre-built home is economical than to custom built home.
- Pre-built home is more appealing to buyer.
Cons of Pre-Built Home:
- Pre built home may not match the desired comfort level in complete.
- It may not have the designs or smaller areas up to your 100% convenient use.
What Should Be Opted- Prebuilt Home Or Custom Built Home?
If the budget is constraint, opting for pre-built house is better option. If you don’t want to live in crowded area, building own house is better option. The custom home gives the privilege for deciding everything from bathroom fittings to windows and from wall colours to floor type. Building by self shapes the dream of having unique home in line with your living style and personality.
Choose ideal location:
Finding land for new home is the most crucial decision to make. The choices are limited to budget and available land size; therefore, you must explore the possibilities at the best. Contact local and online real estate agents. Explore the property websites. Also keep eye on land auctions at the starting point. Invest some time to find out some land developers, utility companies or local farmers holding undeveloped land in your preferred area. You must regularly visit homes & communities agency websites that publish the properties for sale. While selecting an area, you should check POLICE.UK website also to investigate the crime rate in that particular area. Consider the transportation facilities and convenience to commute anytime independently. If you have children, availability of school in nearby area becomes a major concern. Calculate the time and cost of reaching at working place.
Work Out Your Budget:
The costs of self-build project easily spirals out of the control because if you often fail to remain realistic. Research the market cost of land on realistic ground. Assess the fees of architect and builder. Judge the cost of materials, fittings, fixtures and everything else required in home building. Plan to arrange the adequate finances on time taking concern of repayment affordability. Also include the loan cost and other costs that occur time to time. Getting self-build mortgage is good way to arrange the required finances; it allows to get the funds as is required according the construction stage. As per standard, the home owner can get 75% of land cost and 85% of projected construction cost.
Home Loan Options in the UK:
The average interest rate of 2 years fixed mortgage decreased from 2.6 %t in June 2014 to 1.7 % inf June 2018. The total gross mortgage loans increased since 2012; there were approximately 66.2 billion British pounds mortgage loans in 2nd quarter of 2018. The people are coming forward to have their own home instead of living in a rented one but the repayment often becomes a long-term disturbing liability. The UK mortgage loan market is worth of more than £1.3 trillion; as of today, it is the largest in Europe countries in terms of hoe loans lent and outstanding mortgaged debts. The demand of home loan is increasing fast because house prices increased 4.5% in 12 months up to January 2018.
Lending criteria has been tightened in the recent years; the bank lending policies are changing continuously to make the credits safe. Banks and direct lenders both consider property type, property location, monthly income, steadiness in income, employment status, debt documents etc. There are so many products in the market; you may find narrowing down the options a complex task and to simplify the task, you can hire the experienced mortgage broker. The leading home mortgage lenders provide easy to use online loan calculator to assess how much loan can be availed and what the cost would be for the certain period. Lloyds, Santander, Nationwide, Barclays, Royal Bank of Scotland (RBS) and HSBC are the top banks dealing in mortgage loans helping the people to have their own dream home.
The biggest mortgage lenders are not essentially the best lenders for the would-be home owners despite having bad credit score. The same is true for self-employed and the people not having regular income. If you have not impressive financial qualification, it might be tough to get mortgage loan at reasonable price but you can improve the approval chances by approaching a specialist lending agency.