Are you thinking about building your own house? It's an exciting project, isn't it? Being able to design the home of our dreams, exactly to our liking and specifications. If you also need to finance the construction, what you're looking for has a name: a self-build mortgage.

The name itself pretty much says it all, but just in case, we'll clarify. A self-build mortgage is a loan specifically designed for those who want to build their own home exactly as they envision it. This translates into a few minor differences compared to other mortgages, which are designed for existing homes.

At UCI, a mortgage expert will guide you through the entire loan application process, providing detailed information and answering any questions you may have. Before we begin the mortgage process, there are at least two things we need to be very clear about:

What we finance with self-build mortgages

Mortgages for building your own home are designed to finance the construction of your house. With them, you can build the house of your dreams from scratch on land you own. To build the house, you must have the land, a building permit from the local council, a project plan approved by the College of Architects, and a construction budget.

To avoid one of the most common mistakes with self-build mortgages, and with any type of mortgage, it's important to do the math before embarking on building your house. It's relatively common to reach the point of applying for the loan with almost no savings, after paying local taxes and fees, and needing to finance 100% of the construction cost. Not all banks will do this.  

Payment in installments: this is how self-build mortgages work

Mortgages for building our own home work slightly differently than a traditional mortgage. Instead of receiving the entire loan at once, we'll receive the money in installments as construction progresses. As we complete each phase of the project, we'll receive the funds for the next phase.

With a UCI self-build mortgage, you'll first receive an initial amount to get the project and construction started. Then, more capital will be released as the house is built. These phases are agreed upon when you sign the self-build mortgage, and we'll support you every step of the way to ensure they align with your actual needs.

It's best to have the whole process clear.

Not a construction expert? Building your own house will make you one, both in materials and design. After all, if we're going to build our own home, we naturally want to carefully consider the layout, the materials, and so on. While it's most common and advisable to hire specialized experts, it's also important to understand the basic steps of the entire process .

To begin the work we will need:

• The building permit and urban planning permit from the city council.
• Project approval by the College of Architects
• Safety studies, health studies and geotechnical study if needed.
• Record of site layout and commencement of work

To complete the work, the certificate of completion and the work acceptance document will be required.

And finally, to legalize the work we will have to:

• Settle the construction tax and the Tax on Documented Legal Acts (IAJD).
• Pay the first occupancy license fee.
• The deed of declaration of New Construction
• Registration in the Registry and in the Cadastre.

So, is it worth building our house?

Buying a pre-built apartment or house is always easier. The two main advantages of building your own home are the savings and the level of customization you can achieve, as you can build it exactly to your liking. On the one hand, building your own house can save you up to 30% (according to Idealista data) compared to working with a developer. On the other hand, you can choose the building materials, quality, dimensions, and layout of your own home.

And if this option doesn't convince you, but you're certain you want a 100% personalized, custom-built home, at UCI we have a tailor-made solution: the Purchase and Renovation Mortgage, which combines the loan for the purchase and the renovation of the house. This way, you'll have a truly unique home, just like you, who want something different. Your home!

Request more information about the Self-Build Mortgage here .