House building, have site - mortgage??

[hjrdee]

I am considering building a house. I have a site from my parents but am just wondering what happens re: mortgage and borrowing %. can i borrow a full mortgage and use site as collateral? the site would be worth about 10,000, in poor location in sligo!

We only have about 4,000 in savings, so just wondering what our options are?

 

[hjrdee]

Re: above how would the level of mortgage be decided. Is it based on projected cost of build or what? Any advice greatly appreciated.

 

[hjrdee]

Okay, have been in touch with Mortgage broker and he said I can borrow 100% if I own the site.

My question:

Can I pay for Architect costs, planning costs, etc through mortgage or are there specified costs to which the mortgage relates. Who decides?

 

[tml]

basically if you are building your property yourself through direct labour your architect certifies how much your building costs will be and that is how much you can get a mortgage for, you then get the money from the mortgage company in different stages ie at foundation level, wall plate level, roof level etc. The mortgage company usually hold back 5% of the overall loan amount until the property is fully completed.

Because it is your architect who certifies the cost of the self build you would have to ask them to include the different costs in the overall figure and apply for that amount but i dont know if your architect would agree to do this

 

[hjrdee]

Dont see why they wouldn't as it would mean they would get paid quicker. I'm trying to ascertain what type of costs im facing and how they will be paid. I should be able to build a good house for about 120,000 but am unsure of costs involved and how they get paid. I presume all electrician costs, roofing, etc are covered by mortgage. What about landscaping costs, furnishing costs?