Mortgage to complete house

[quadrangle]

Bungalow circa 1900 square feet. Regular rectangular block of a house plus Porch and Sunroom

Started before March 2014 regulations and will continue direct labour.

A number of cost items have been dealt with no bills outstanding to date for work completed.

1.Own site.
2.Council fees have been fully paid off.
3.Blockwork is in for base though not filled
4.Engineer is paid up to date

There are about 6 months gone on a 10 year 8.5% loan for a fixed sum of money. Due to mainly using savings to date for construction work and regular repayments of roughly 500 per month covering any of the loan money spent, the money on deposit is more or less equal to the money owed.

No major urgency for final completion to turnkey standard. What are the mortgage or loan options to finish?? Single person. Secure state employment. Like the idea of flexible spending at my own pace rather than drawing down payments but am not totally against the idea.

What finance products are available or suitable?

 

[quadrangle]

Does anyone have any views on this?

With base in, a much smaller mortgage would be necessary than would have been needed starting off with a green field site as some of the more unpredictable costs are out of the way and from now on the costs for the remainder of the house shouldn't spring too many surprises.

Which is the better

A small longer term mortgage to go side by side with the 10 year loan and pay both together

or

A bigger mortgage with enough to pay off the 10 year loan and continue with one set of payments.

 

[Branz]

8.5% is very high.
Is there an option to repay it earlier without a break fee.

You need to see what mortgage u will get based on your income/status/age/other debts etc.
You then need to price up the house to completion: e.g. builders finish and see where the two numbers sit.
Do u have the necessary deposit?
You also need to get someone to sign off on the works for stage payments.
You should build to the best spec u can afford unless you intend to sell at some point, forget about 2014 regs even if you can still use them, am not sure

 

[quadrangle]

There is an option to repay the loan early without any penalty.

The engineer will sign off on stage payments. That is not an issue.

The 2014 reference is in relation to being able to build direct labour without having to employ a project manager. It isn't related to the spec.


A small mortgage over the longer term to add to existing loan. It would be easier to get a smaller amount. Less deposit required etc. and site with building work done to date may even be accepted as security.