Your home may be repossessed if you do not keep up repayments on your mortgage

Self Build Home Loan

A short term, variable interest-only loan that gives you the staged funds to build your dream home.

Good to know

  • Designed to help you keep costs to a minimum during the build period
  • No early repayment charge, and no restriction on overpayments
  • We can lend you as little as £10,000
  • You can repay the loan over 6-18 months

Need to know

  • Whether we provide credit depends on your circumstances, and you must be 18 or over - lending terms and conditions apply
  • Your home is security for your mortgage, and you may also need to provide other security
  • When the build is complete you’ll need to take out a mortgage or repay the loan
  • We charge a fee for this product
  • Your repayments may go up as well as down

Representative example

A loan of £147,000 payable over 18 months on our rate of 4.85% variable would require 18 monthly payments of £618.45.

The total amount payable would be £158,132.11 made up of the loan amount plus interest (£11,132.11). A product fee (£1,470), valuation fee (£275) and mortgage exit fee (£125) are also payable.

The overall cost for comparison is 5.8% APRC representative.

The actual rate will depend on your circumstances, please ask for a personalised illustration.

Other important information

  • You will need to service your mortgage from a Danske Bank personal current account
  • Not a portable loan.
  • The bank only provides mortgages in sterling and will not consider Self Build Home Loan applications where the applicant’s income is in another currency.
  • Repayments are made monthly.
  • Interest is calculated daily and charged quarterly.
  • When you take out a mortgage you are borrowing against the value of your home.
  • When you come to sell your home you will need to use the sale's proceeds to repay your outstanding mortgage balance. Be aware that if the value of your home falls below the balance of your mortgage, then you will have to pay us the difference if you want to sell your home.

Terms and conditions

  • If you choose a Self Build Home Loan, meeting the terms and conditions of your mortgage contract does not ensure repayment of the total amount of credit.
  • When the build is complete, if you decide not to convert to a Danske Bank residential repayment mortgage you will be required to repay the outstanding capital to us.
  • You will have to pay for an independent professional valuation. We will arrange this for you.
  • You may have to pay fees such as legal charges, which are not paid through us.
  • You must have adequate buildings insurance in place on your property. You do not have to arrange this through us.
  • For full details on charges please see our Tariff of Mortgage Charges.
  • If your mortgage term takes you beyond normal retirement age, we may ask you to provide us with evidence that you’ll be able to afford your repayments after you stop working.