What advisers need to know about the new age of self-build – Lownds

Unlike traditional purchases, self-build isn’t just about helping someone buy a property, it’s about helping them create a home that’s designed around their lives. A life that is often more energy efficient, more sustainable, and rooted in the communities they already belong to.

Yet, while demand is growing, the market still faces real challenges. A recent report highlighted that over half of UK councils are failing to meet their legal duty to provide enough self-build plots, with 40% of them falling short by at least half of what’s required. That gap between demand and delivery means when land does come onto the market, clients need both the right advice and the right funding solution in place to ensure they can successfully grasp these opportunities.

Obstacles faced by self-build borrowers

From a lending perspective, self-build is very different to a standard mortgage. Borrowers don’t receive the loan amount in one lump sum; instead, it’s released in stages as the build progresses. While this staged approach manages lender risk, it can leave borrowers squeezed if they need to pay upfront for labour and materials before the next release is triggered.

This is where advanced stage payment products are there to make a real difference. By releasing funds at the start of each stage, borrowers get access to vital cash flow exactly when it’s needed, rather than scrambling to bridge the gap with personal savings, credit, or short-term finance. For advisers, being able to guide clients towards lenders who offer this flexibility can help projects stay on track and reduce stress for everyone involved.

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Historically, criteria have also limited who can access self-build finance. For example, many lenders cap affordability assessments at age 70, making it harder for older clients still in employment to take on a project. Others insist on full planning permission before an application can even be considered, which can stall clients trying to secure land with only outline consent.

Recent innovation is helping to shift this.

We are among the few lenders who will now accept outline planning permission, enabling borrowers to purchase land earlier. In addition, we also take earned income into account up to age 75, reflecting the reality that many clients are working longer and remain financially robust well into later life. These adjustments may seem small, but they help widen the pool of potential self-builders and open up opportunities for advisers to support a broader range of clients.

Quite rightly, self-build remains a niche sector, which means many borrowers will approach it with little knowledge of how the process works. That’s where intermediaries can add real value. Advisers who understand how to manage staged payments, warranties and permission can help demystify what might otherwise feel like an intimidating process.

Partnerships with lenders who specialise in this space also matter. Building societiesm in particular, have long been active supporters of self-build, using their flexibility and manual underwriting expertise to tailor solutions around individual cases. Working with providers who not only deliver the right products, supported by flexible criteria, but also equip advisers with tools, resources and specialist knowledge can make all the difference in turning an ambitious plan into a finished home.

Ultimately, self-build is about more than just bricks and mortar. It’s about enabling clients to realise a vision, while giving advisers the chance to showcase the very best of what professional mortgage advice can deliver – specialist knowledge, tailored guidance, and the reassurance that they have the right funding partner in place at every stage of the build.