# Mortgage for Selfbuild project



## paintpotmen (25 Sep 2006)

Hello, We're trying to get finance for a large selfbuild project.

Can anyone tell me if there is a particular bank, building society or mortgage broker who would commonly deal with selfbuild projects.

Many thanks in advance for your advice


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## dereko1969 (26 Sep 2006)

most of the banks do this. when we were looking for our mortgage for our selfbuild we had nearly the full range to pick from. the main problem is if you need the mortgage to buy the site as some banks may place a lower limit on the self-build mortgage ie less than 90%. we used ICS and they've been fine. i think i remember bank of scotland (ireland) being competitive but the problem was, as far as i can remember, that their max loan was 74%, this was nearly 2 years ago so things may have changed since. best of luck with the build.


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## Bamhan (26 Sep 2006)

Used NIB.


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## CathyK (26 Sep 2006)

As far as I'm aware Bank of Scotland Ireland will not lend on a self build


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## gpashe (26 Sep 2006)

Went with IIB - they allow mortgage to be split into a repayment portion and an interest only portion. Handy if you are not sure of total final cost.


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## bobk (27 Sep 2006)

CathyK is correct BOS don't do self build.

Other than that, most lenders are able to provide finance.
The amount of money you will get depends on the lender.

For instance, some will only give 80% of the site purchase and 100% of the build. some 90% for both.

Word of advice though, build in a contingency and borrow more than it actually costs to build the property. Costs inevitably spiral and if you don't need it, don't take it from the bank.


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## louth area (29 Mar 2007)

HELLO
I am in the middle of SELFBUILD at the moment its a domer 2400sq.ft. I had 100,000 profit from my 1st house which has done foundations blockwork red brick around windows stonework and roof.
I am now ready to draw down mortgage which i have to pay 80,000 for site of father 
I have got a engineer to certify the stages,i have* paid my builders in cash* and small amout cheque does that effect my mortgage and _how much could i_ _draw down 1st?._
Does anyone know about paying for a site of family how much should i say i paid for it as dont want myself or father or uncle to be liable for too much tax etc.
many thanks


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## paulocon (29 Mar 2007)

Couple of articles on this page that might point you in the right direction...


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## louth area (30 Mar 2007)

Paulocon
 Thank you the artices were very useful but do u know anything about paying for a site and the extras involved  
Cheers


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## paulocon (30 Mar 2007)

Louthman,

Not sure what you mean but lenders will normally lend around 80% of the site cost if full planning is in place. I am not sure how you will be affected now that your build has started - I suggest you get some financial advise - there are quite a few agencies out there that specialise in Self Build Mortgages.


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## Vanilla (30 Mar 2007)

louth area said:


> HELLO
> I am in the middle of SELFBUILD at the moment its a domer 2400sq.ft. I had 100,000 profit from my 1st house which has done foundations blockwork red brick around windows stonework and roof.
> I am now ready to draw down mortgage which i have to pay 80,000 for site of father
> I have got a engineer to certify the stages,i have* paid my builders in cash* and small amout cheque does that effect my mortgage and _how much could i_ _draw down 1st?._
> ...


 
You won't get help to evade tax on this site. You should get proper financial and tax advice and put your affairs in order.


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## yop (3 Apr 2007)

We went with  NIB and found them very good to deal with, a bit scatty, but very happy with them.

We got 80% of the value of "declared" value of the site, in other words we paid declared value + cash to the land owner.
We had money put aside for the build and used this.

Of course our engineer signed off about 10k more on the 1st drawdown so as to give us breathing space.


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## Vanilla (3 Apr 2007)

yop said:


> We got 80% of the value of "declared" value of the site, in other words we paid declared value + cash to the land owner.
> .


 
If you are saying what I think you are saying, this is fraud. You are defrauding the revenue. Do you understand that?


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