Self Build Stories
Case studies and key benefits of the Self Build Loan Fund in Scotland
The original pilot Highland Self Build Loan Fund was established by the Scottish Government in 2016 and administered by us at the Communities Housing Trust (CHT). There was, and still is, a demand and need to provide financial support to those who want or need to build their own home but are struggling to obtain mainstream self-build finance.
Following the success of the pilot Highland fund, the Scotland wide Self Build Loan Fund was launched in 2018. The fund continues to be available and can accept applications until 31 August 2025, for a maximum loan of £175,000.
As of June 2024, a total of 65 families and individuals have been supported with loans totalling in excess of £9 Million in locations as shown on the map below.
Click here for more information about applying to the Self Build Loan Fund.
Following the success of the pilot Highland fund, the Scotland wide Self Build Loan Fund was launched in 2018. The fund continues to be available and can accept applications until 31 August 2025, for a maximum loan of £175,000.
As of June 2024, a total of 65 families and individuals have been supported with loans totalling in excess of £9 Million in locations as shown on the map below.
Click here for more information about applying to the Self Build Loan Fund.
Key benefits of the Self Build Loan Fund
There are many reasons for self-building, and these needs were what led us to help establish the Loan Fund in the first place. Here are some of the reasons, as told by the homeowners themselves.
An unusual situation for the whole family to live together
|
'We had an unusual situation in that Elizabeth and I wanted to build a large family home in which we could live but also live with her two mature daughters and their families and future family, living communally. The house was designed to be ecologically sound and sustainable with ground source heating, heat recovery etc. Problem: We had a funding gap!
|
After a number of delays, the build is nearly complete!
|
'When we started our self-build project we planned to start building work in spring 2024. We had already bought the plot and started groundwork. However we really struggled to find a builder and had to bring forward the work a few months to tie in with the availability of tradesmen. We put our house up for sale which was meant to fund the self-build, but due to the downturn in the market, we didn’t sell as quickly as we had expected and needed to find some funding to pay for the building work until our house did sell. We tried several banks and looked at mortgage options but despite both of us in full time work with a good income, we were unable to secure any funding through them. At this point we were on the verge of having to cancel everything and wondered if we would actually be able to see this project go ahead at all. We were so grateful to find out we were eligible to obtain funding from the [Scottish Government Self Build] Communities Housing Trust. The application looked daunting but Neil helped guide us through the whole process and communicated with us throughout. Thankfully everything was approved and we were able to go ahead with our self-build on the new schedule. Despite 3 severe storms, losing 4 days due to snow, a 3 week road closure due to a landslip following some torrential rain and delays with deliveries, our new home is nearly complete. It has taken a wee bit longer than planned but it will be ready to move into shortly. Our house has now sold and we have moved to a great location in a lovely community. We can’t thank the Communities Housing Trust enough for helping us make this dream come true.'
|
The after affects of COVID impacting the possibility of getting a mortgage
|
'Due to my husband being a fisherman and the after effects of COVID on his business, we found it so hard to get a mortgage. We had tried and failed to get a mortgage and started thinking that building our own home was going to be impossible. Luckily, we had read about the SBLF and got in touch with Neil Walker at Communities Housing Trust to see if this was the solution we needed. From the very start, the process was exceptionally well managed and we were well supported and informed at every stage. Neil Walker was always there at the other end of the phone with sound advice when we had any questions, issues or needed guidance. That application process was straight forward yet robust, and actually helped us to work out what we needed in terms of finances, timescales and how it would be completed. It really enabled us to fully consider all the aspects of the build. Without this funding, we would not have been able to build our dream home. We now have a lovely house for our three young children which will be ready to move into in just a few weeks. What seemed impossible before has now been achieved, and for this, we are so very grateful. We are so glad this service was available to us as it has been literally life changing. We would highly recommend the SBLF to anyone in a similar position. The team are absolutely excellent to deal with and we can honestly say that we felt we were in safe hands throughout.'
|
Supporting people who struggle to obtain mainstream finance
Lee and Tracy were refused by four banks and wouldn’t have been able to build a home for their family without the Loan Fund. It is crucial we continue to provide a range of housing options.
Lee says it best: “I really hope that this fund will always be there to help a family in the same situation as ourselves.”
Lee says it best: “I really hope that this fund will always be there to help a family in the same situation as ourselves.”
|
"Me and Tracy had looked at building our dream family home to bring our kids up in. We tried to secure a self-build mortgage from several banks but got turned down by all four of them.
"Thinking we had to give up on our dream, we heard about the Self Build Loan Fund (SBLF). With all other options tried we contacted the Communities Housing Trust. Neil Walker and his team were more than happy to look over our application and help in any way they could. It didn’t take long to hear back that we were eligible to receive the funding to build our home. Neil and his team we always very easy to get hold of be it by email or by phone. "Without this amazing fund we simply would not have been able to build our family home. A year down the line after the build has been completed me and my family have settled in to our home and couldn’t be happier. This would not have happened without the SBLF. "I really hope that this fund will always be there to help a family in the same situation as ourselves. To help them have their dream home, a place they can call their own. On behalf of me and my partner thank you to the Communities Housing Trust for making our dream possible." Lee & Tracy, Orkney |
Adding to housing stock
There are many reasons for building a house – rather than being a privilege, it may be a necessity. In areas of Scotland where housing is limited, such as the islands, it may be the only sensible option. This couple in Mull are thinking long-term, wanting to build in order to add a house to the island for generations to come.
|
"Raising £175,000 through the Self Build Loan Fund (SBLF) was a vital link to enable us to achieve two main aims: Have the confidence and wherewithal to secure our own move to Mull, and to do so by adding to the available housing stock on the Island.
"As retirees, we had the advantage of the value built up in our previous home but it was very difficult, and expensive, to secure a commercial bridging loan to enable to self-build before we had sold our existing property. The SBLF provided the vital bridging finance. Having the loan also meant that we could pursue the build quickly, within the limited construction window available due to the weather. "And, importantly for us, it meant we could talk confidently to local builders and contractors, with us and them secure in the knowledge that we could pay them, and that they would be paid on time. "The discipline of working within the SBLF, and the guidance we obtained from the Communities Housing Trust, also ensured that we understood the challenges as well as benefits of self-build on Mull. "As with other islands and marginal communities, building on Mull already carries a cost overhead for the supply and delivery of building materials. The SBLF provides vital access to finance and knowledge, making the personal dream of home ownership available to local families, adding to the longer-term resident housing stock, and underpinning sustainable island communities. Gary & Susan, Mull |
