P
patrickd
Guest
Hi, with the first time buyers reflief changes I'm thinking of getting a move on and building my very own house. I'm not sure what the process is in relation to the banks and how they value a self build and how the mortgage is disbursed.
My budget for the build would be about 225k. Do I approach a bank and look for this amount? How do the banks value a self-build from plans only?
Secondly, assuming they agree to lend me the money (big assumption!) how is the mortgage disbursed over the lifetime of the build. Do they just give you the full amount and let you draw down to pay suppliers/contractors as you need, or is it drawn down in stages? If it is drawn down in stages how is interest calculated? Is it calculated against what you have drawn down or calculated v the full amount?
Finally if the build if under budget (some chance) can you just hand them back what you haven't spent. So say I borrowed 225k, but only spent 200k, could I hand back the 25k?
Thanks,
Patrick
My budget for the build would be about 225k. Do I approach a bank and look for this amount? How do the banks value a self-build from plans only?
Secondly, assuming they agree to lend me the money (big assumption!) how is the mortgage disbursed over the lifetime of the build. Do they just give you the full amount and let you draw down to pay suppliers/contractors as you need, or is it drawn down in stages? If it is drawn down in stages how is interest calculated? Is it calculated against what you have drawn down or calculated v the full amount?
Finally if the build if under budget (some chance) can you just hand them back what you haven't spent. So say I borrowed 225k, but only spent 200k, could I hand back the 25k?
Thanks,
Patrick