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Mortgages for Kit Homes

Best Mortgage Rates

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Mortgages for Kit Homes

    • 4.07% Initial
    • 5 year fixed
    • 6.6% APRC
    • Cashback Max £250
      Free Legals
      Free Valuation
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    • 4.10% Initial
    • 5 year fixed
    • 6% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.14% Initial
    • 5 year fixed
    • 6.3% APRC
    • Cashback £0
      Free Legals
      Free Valuation
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    • 4.17% Initial
    • 5 year fixed
    • 6.4% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.17% Initial
    • 2 year fixed
    • 6.7% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.18% Initial
    • 5 year fixed
    • 6.7% APRC
    • Cashback Max £250
      Free Legals
      Free Valuation
    • Get quotes
    • 4.18% Initial
    • 5 year fixed
    • 6.7% APRC
    • Cashback Max £250
      Free Legals
      Free Valuation
    • Get quotes
    • 4.19% Initial
    • 5 year fixed
    • 6% APRC
    • Cashback Max £1,250
      Free Legals
      Free Valuation
    • Get quotes
    • 4.19% Initial
    • 2 year fixed
    • 8% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.20% Initial
    • 5 year fixed
    • 6% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes

Representative example based on a fixed rate mortgage

A mortgage of £375,000 payable over 20 years initially on a fixed rate for 5 years at 4.38% and then at the standard variable rate of 7.65% for the remaining 15 years would require 60 monthly payments of £2,351.88 and then 180 monthly payments of £2,899.55.

The total amount payable would be £663,156.80 which includes interest and product fees of £1,124.

The overall cost for comparison is 6.5% APRC representative.

Early repayment charges may apply.

Mortgages for Kit Homes

Kit home mortgage deals compared

As a kit home owner, you are probably aware that this type of property requires a different mortgage approach since it is unusual. The majority of traditional mortgage lenders will not offer mortgages for kit homes, since they view them as a high-risk, unusual mortgage proposition.

As long as you approach the right mortgage lenders, it is usually possible to get a mortgage deal for a kit home by seeking expert, independent mortgage advice. 

Kit homes: what are they?

It is essentially a house that comes in a ready-to-build package, rather than being individually designed by an architect, and is already popular in parts of Europe. Kit homes, however, can be customized to meet your specific needs. Using them can be a cost-effective way to build your own home. Additionally, they are often highly energy-efficient, featuring the latest in insulation and homebuilding technology.

Is it possible to get a mortgage deal for a kit home?

Kit homes generally require the same kind of mortgage as self-build homes. There are plenty of mortgage providers who offer mortgage deals on self-build houses, so if you approach the right kind of mortgage lender, you should be able to get the mortgage deal you need to build your kit home.

You may be able to borrow up to 95% of the land and building costs from mortgage lenders who specialize in the self-build and kit home market. An initial mortgage deal for your kit home could prove extremely helpful if you don't have a large amount of savings to fund the purchase and construction of the land.

Various factors such as your income, credit history, and affordability will determine the amount you may be offered for a mortgage.

What is the process of getting a mortgage for a kit home?

As opposed to traditional mortgages, kit home mortgages release funds on a staggered schedule. Both mortgage lenders and mortgage seekers can benefit from this type of financial backing.

Based on the estimated final value of the house, a self-build mortgage seeker may be able to access the money required to purchase the land for their kit home project.

In addition, by releasing the money in stages, mortgage lenders can be confident the money is being spent to keep the building project on track. In addition, they may be willing to lend a larger amount than they might otherwise.

Here is an example of how mortgage money for a kit home might be released in stages:  

  • Step one- You release cash in order to purchase the land and materials necessary to build your kit home.

  • The next step is to release finance so that you can pay your builders, who will begin working on the kit home's structure.

  • The third step involves releasing funds to fund interior construction, plastering, plumbing, and other essential improvements.

 

To investigate your finance options call our broker team or fill in our call back form -  speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464

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