Aspiring self-builders are being offered an easier route to financing their dream home, thanks to an innovative council pilot scheme.
Cherwell District Council‘s self-build mortgage scheme lets local people buy Mix and Match properties at Graven Hill with only a 5% deposit. The council, thought to be the first in the UK to adopt such a scheme, is indemnifying up to 20% of each mortgage.
Supporting its aspiration to make housing more accessible, Cherwell has budgeted up to £2.5m to cover development finance to pay for the construction of the new homes. Mix and Match allows people to pick from a range of creative and customisable designs at the largest self-build development in the UK.
Cllr Barry Wood, Leader of the Council, said: “Cherwell’s self-build mortgage scheme aims to make self-build as easy as new build, addressing the financial obstacles that can often put people off.
“Graven Hill’s Mix and Match product makes it an even more attractive proposition. By offering a range of designs to choose from, they empower people who might not know how to go about picking a supplier or costing a project to get started on a build that’s perfectly tailored to their needs. I would urge anyone who is interested in self-build to visit the Graven Hill Plot Shop in Pioneer Square, they may be surprised by just how affordable it can be.”
The criteria for the mortgage scheme stipulates that applicants must already live or work in Cherwell district. The 5% deposit required compares very favourably to the market standard of around 25%.
On completion of the build, the lender would advance the mortgage and the council would recover all costs. This means it would be possible to repurpose the initial fund if the pilot were successful.