Providing you have a regular income and a reasonable credit history, you should have no difficulty in obtaining a loan to build your own home or to undertake a renovation or conversion project.

For details of lenders that offer mortgages for homebuilding projects see the H&R finance table below. For full details of mortgage stage payments, terms and conditions, contact individual lenders direct. In addition to the lenders in the table, there are others, such as Halifax HBoS, who will finance conversions, but will not lend on land.

It is also possible to finance your project using a bridging loan secured against equity in your current home, either in conjunction with, or instead of, a stage payment mortgage secured against the building project. This kind of funding, often charged at a small premium above mortgage rates, is offered primarily by banks. Lending is not usually restricted by the standard income multipliers that apply to mortgages but such a facility usually carries an arrangement fee, typically 1-1.5% of the advance.

As bridging finance is more expensive than mortgage finance, it is best suited to those who do not want or need a mortgage once they have sold their current home, or those who want to raise funds in addition to taking out a stage payment mortgage to help fund the project without having to sell their current home.

The maximum amount you can borrow on a conventional mortgage is usually calculated using income multipliers to assess afford-ability. These are typically 2.5 x joint income, 3 x a higher income plus 1 x a second income or, for sole earners, 3-4 x income. Existing commitments, e.g. mortgage payments on your current home, may be taken into account when assessing affordability. Some lenders may consider offering a stage payment mortgage alongside an existing home loan, allowing you to remain in your current home during construction.

As part of your application, some proof of income will be required, typically in the form of three months' payslips and your latest P60. Self-employed applicants will usually have to provide two years' audited accounts or approach lenders, such as Skipton BS, Barclays, and HSBC who will consider offering funding on a self-certified basis.

Advances on land or existing buildings for renovation/conversion are available up to a maximum of 95% of valuation or purchase price, whichever is the lower. In most cases some form of planning consent must be in place for the development of a plot or conversion opportunity before a lender will release funds.

Funding for construction is usually released in arrears on completion of key stages in the building work, after it has been signed off by either the lender's valuer or a supervising professional. Two specialist self-build mortgage arrangers, Buildstore and Riley Associates, offer an indemnity policy which allows some lenders to release funds in advance of the build stages. This can help cashflow and eliminate the need for bridging finance. The stages, and the percentage of the total advance released, will vary according to the number of storeys being built and the type of construction employed. Exact stage payment details should always be discussed and agreed with your lender. You need to make certain you have sufficient funds to cover the initial fees.

Capital of at least 10-15% of the total project cost is usually needed to get a homebuilding project going. Although it is possible to get a self-build mortgage without selling your current home, most people choose to sell up in order to release capital. If you choose this route, do not forget to budget for somewhere to live and for storage - bear in mind that rental can be at least as expensive as a mortgage. The most common option for temporary accommodation is rental, although many people stay with family or in a mobile home on site.

Fees vary from lender to lender. Lenders may charge a mortgage application fee, typically ú2-300. There will also be a valuation fee payable which will vary according to the value of your plot, typically ú160-400. There may also be a separate fee for specialist products such as a fixed rate or capped rate mortgage.

Further fees are usually payable for the re-inspection of building work prior to the release of each stage payment. This charge is typically ú30-50 for each of four or more stage payments - check with your lender for further details. This role can also be undertaken by a supervising professional, such as a chartered surveyor, architect or approved warranty inspector (e.g. NHBC or Zurich), in which case there will not be an additional fee.

Interest will be charged at the agreed interest rate - usually the lender's current variable rate - from the moment funds are released, but only on the amount that has been borrowed/drawn down to date. Interest payments therefore start low and increase towards completion.