going for a mortgage - using site value for mortgage

M

murphy.c

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hi,

I have a site in my name (value of 65K) but very little savings - 3k (recently paid off loan that I had for 8K).

I am awaiting planning permission to be granted but very hopeful I will get planning permission so the question is can I use the value of the site to apply for mortgage and will such low savings count against me?

I work in retail management and will be apply for a mortgage with my girlfriend who works in youth work. (salaries of 30k and 41k)

thanks for your help.
 
murphy.c said:
hi,

I have a site in my name (value of 65K) but very little savings - 3k (recently paid off loan that I had for 8K).

I am awaiting planning permission to be granted but very hopeful I will get planning permission so the question is can I use the value of the site to apply for mortgage and will such low savings count against me?

I work in retail management and will be apply for a mortgage with my girlfriend who works in youth work. (salaries of 30k and 41k)

thanks for your help.
Click to expand...

I can only go on my experience but i was given a mortgage with little savings, using a gifted site as equity. You have decent salaries too, which should allow you to borrow 300k+. The issue with savings may be if some banks do not lend 100% of the construction costs with gifted sites although i think most of them do. you will also need letters from your employers saying your jobs are permanent etc. I would recommend speaking to a bank or broker who will go through everything with you, but in anwser to your question.... my opinion is Yes, you can use the site and No. your low savings do not count against you because of the site.
 
We finally just got ours with BOI (2nd time round) but we were allowed 80% of the value of the land with the home. We had 4k in savings but this soon went by getting the planning through.
 
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