Mortgage for new build

[Whatnot]

hi there I am finding it difficult to get a Mortgage for my self build, the bank want me to sell my house and go rent which is crazy going on the way the rental market is at the moment. between equity in my home and savings I can come up with 50% of the cost of the build. the bank seems to want me to apply for the full amount to build and finish the house or leave them with something they can sell should it go wrong that's understandable. so to my question do I start the the build getting an engineer to certify each stage going as far as I can and get a mortgage to finish the house. I had thought about putting up a logcabdin type of thing to live in while the build is going on but I have learned that I probably will need planning permission for that. I really don't know what to do next, I own the site and has full planning permission on it, tuff pile to swallow maybe sell it. I look forward to any input thanks

 

[becky]

hi there I am finding it difficult to get a Mortgage for my self build, the bank want me to sell my house and go rent which is crazy going on the way the rental market is at the moment. between equity in my home and savings I can come up with 50% of the cost of the build. the bank seems to want me to apply for the full amount to build and finish the house or leave them with something they can sell should it go wrong that's understandable. so to my question do I start the the build getting an engineer to certify each stage going as far as I can and get a mortgage to finish the house. I had thought about putting up a logcabdin type of thing to live in while the build is going on but I have learned that I probably will need planning permission for that. I really don't know what to do next, I own the site and has full planning permission on it, tuff pile to swallow maybe sell it. I look forward to any input thanks

Hi, sorry I can't help but can you put a few paragraphs, even after a two sentences. It's too difficult to read.

 

[NoRegretsCoyote]

the bank want me to sell my house

Have you talked to only one bank?

For things like this it can be good to talk to a broker as they are often better with non-standard cases and what lenders have rules that would facilitate you.

 

[almostthere]

Will they not offer you stage payments. You fund each stage up front. A surveyor then certifies each stage as you move along? They release the funds. Foundation....Walls......Roof etc?

 

[Whatnot]

Will they not offer you stage payments. You fund each stage up front. A surveyor then certifies each stage as you move along? They release the funds. Foundation....Walls......Roof etc?

that would mean that I would need mortgage in place. will a bank come on board if the house has ground work done block work started with a surveyor certifies each stage

 

[Pinoy adventure]

A mobile home on site is a popular option rather than a log cabin.

 

[Whatnot]

A mobile home on site is a popular option rather than a log cabin.

I get what you are saying they would do the same job mobile home would be a cheaper option specially as it would not be a permanent thing, do you know anyone that has experience doing this.

 

[Monbretia]

Have a look at the Self Build and Renovation page on FB, many there have mobile homes on site while building, do a search or ask the question and you'll get loads of replies.

The problem with bank wanting you to sell first must be a matter of income, if you had sufficient income to service both mortgages they wouldn't care but if you haven't then they can't have an outstanding mortgage while you draw down a new one, what if first house didn't sell then! Now I know it's unlikely but banks are not keen on risk!

The mobile home route would be much cheaper than log cabin and you can sell on the mobile home afterwards, I am presently researching log cabin type things and they have gone seriously up in price like everything of course! I have lived in a mobile home in the past, not while building but back in the 80s while saving on renting so I could buy, it was beside my parents house. Now I only had one child while living there but I loved it! Uncomplicated, tidied in minutes, couldn't accumulate stuff although you might fall down on that one as you probably have already accumulated stuff and will have to store. But life was a lot less complicated back then easier to live with the basics as there wasn't other options.

I lived in it for nearly 5 yrs and sold it for more than I paid for it (luck), it was a bit noisy/scary in very windy weather but other than that very comfortable.