Deposit question

[king_of_me]

Hi,

I (luckily) have my own site for a house. I'm currently earning about 40000 per year. In the next two years, I'd like to borrow about 120000 to build my house.

How much of a deposit should I aim to have before applying for a morgage?


BTW, I'm currently starting a 2 year contract, so my plan is to save a deposit for the 2 years, and then once I've got another contract (hopefully!), apply for the morgage and build.

 

[Dave Vanian]

At present you don't need to save up a deposit for this. The site is considered your deposit and you can borrow 100% of the build cost.

 

[dv8]

This is correct. Lenders will still advance 100% of the build cost.