WANNABE homeowners in Wales are now able to acquire loans worth as much as lb400,000 to assist cover the price of building their very own home.
Under the new Self Build Wales scheme, you can borrow 100 percent from the cost to build your house, plus 75 per cent of the price of the plot of land.
The funds are being dished by the Welsh government's Development Bank of Wales, which has a lb210million fund at the ready, in a bid to "help remove the barriers and uncertainty that prevent people in Wales from building their own homes".
It believes because they build your personal place, developer earnings are removed and you've got the opportunity to build a home that's tailored for your lifestyle as well as your budget.
And it reckons the scheme is the only one of its kind in the UK.
How will the scheme work?
Unlike many real estate schemes, which are generally only available to first-time buyers, anyone can apply for this initiative – so long as the property is being built in Wales.
The self-build must also be your only property – you can't own other homes elsewhere and when you do, you'll have to sell them before the build is complete.
As a buyer, you have to stump up a 25 per cent deposit for the price of the land.
The cost of a plot will vary but Development Bank of Wales says it's looked at scenarios with land costing between lb10,000 and lb100,000.
This will include any regulatory, planning or building control fees.
So a 25 per cent deposit would mean you stumping up around lb2,500 to lb25,000.
To assist you, you don't even must find the land yourself, you can find, search and apply for as much as five suitable plots that curently have planning permission in place on the Self Build Wales website.
There are currently 22 sites available, mostly around southern Wales, however, many are still into consideration and also have not yet been approved for development.
These plots include pre-approved designs that prioritise energy efficiency, and you can choose from properties with two bedrooms up to five bedrooms.
But the designs are only starting points, and they can be adapted to suit your specific needs.
Once your plot continues to be signed off, you have to find a builder registered with Trustmark to handle the job – this can be done around the Trustmark website.
You can't access the scheme if you've found one's own plot for development, and you can't make use of an unregistered builder unless you have prior approval in the scheme.
How does the loan work?
As area of the scheme, you're lent 75 per cent from the price of the land, plus 100 per cent from the cost of the build.
Costs will be different wildly but Development Bank of Wales says the initial maximum total loan is lb400,000 – even though it adds that it will monitor this figure.
You'll pay an agreement fee which is between 1.25 per cent and 2 percent to take out the borrowed funds, while a fixed interest rate is charged at between 4 percent and eight percent.
But the loans aren't dished in one lump sum, and instead smaller amount will be released as needed throughout the build – and interest isn't charged until the cash is released.
Loans, plus interest, need to be repaid entirely after 2 yrs – or once the building work is complete – whichever comes first.
You can't transfer to the home until all of the loans have been fully repaid,
The idea is for builds to be completed inside a two year time frame – if it isn't, or you can't afford to repay, your situation will be assessed on a situational basis.
It's expected loans is going to be repaid by either selling your existing property for those who have one, or if you take out a regular residential mortgage to pay for the expense.
Self Build Wales isn't providing the mortgages, so you'll have to make contact with a broker to find a suitable mortgage prior to going ahead with the scheme.
Are there any catches?
Yes, the scheme does have a few catches. For example, you can't rent or sell the self-build home for a minimum of five years from the completion date.
If you have to sell within five years, all proceeds after your mortgage lender has been fully paid (for those who have a home loan), is going to be payable to Self Build Wales.
And if you start the procedure you may lose out financially if you take out mid-way through.
You should also pay out for stamp duty yourself. Referred to as land transaction tax in Wales, this is applicable on properties costing more than lb180,000.
Is it worthwhile?
David Hollingworth, a mortgage expert at broker London & Country, explains that individuals heading down the self-build route typically have to take out a specialist self-build mortgage.
This will often shell out funds at stages throughout the build with people remortgaging to a traditional repayment mortgage when the build is finished.
But he states these mortgages are specialist items that typically are more expensive upfront, in most cases require a broker to dig out.
Specialist lender Buildstore, for example, charges rates close to 4.99 per cent on self-build mortgages up to lb400,000 whenever you put down a 20 percent deposit.
"Self-build can be done and there are self-build mortgages," said Mr Hollingworth.
"These typically release funds at stages from the build, so for anyone taking a look at it, it's vital they work out all the numbers so they know they've enough capital to get things started and they fully understand the mortgage."
But he points out that where self-builds often fail reaches the look application stage, so using sites which have been pre-approved could be an advantage.
He said: "Often the shortfall with self-build is getting a plot you can get planning permission on.
"So packaging everything up so you have the land already with planning permission and you know that the funds are there'll really help some people make what is an aspiration a reality."
If you're thinking about this route, ensure you compare all the options and talk to an independent mortgage adviser, and perhaps an economic adviser too.
Another choice for those can not jump on the housing ladder is really a 100 per cent mortgage. We explain what they are and just how they work.
Halifax and Lloyds both launched no-deposit mortgages last year.
You can also check out our My First Home series for first-time buyer inspiration.