self build mortgage

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baldyman27

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639
Hey,

Just wondering if anyone has experience of getting a mortgage for a selfbuild? Site is free and probably will be looking for 170,000. Are banks happy enough to do business with self builders?
 
baldyman27 said:
Hey,

Just wondering if anyone has experience of getting a mortgage for a selfbuild? Site is free and probably will be looking for 170,000. Are banks happy enough to do business with self builders?
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Do you have outline planning on your site, do you have 20k savings, are you in secure employment? If the answer to all these questions is yes, you shouldnt have a problem.

Joejoe
 
Self-employed as a builder as it happens. Won't be going for mortgage until full planning is granted. Savings of 40k and regular savings also.
 
Who has the best deal out there for this type of Mortgage at the moment ?
 
Several banks will offer 100% of the construction costs as the site is your own. Banks are still happy to do business on self builds. They are actually happier with self builds as there is less of a chance of negative equity because the loan to value on completion should be relatively small.

There is no correct answer to who has the best deal at the moment.
Rates applicable to normal house purchases will be applicable to self builds also. Some banks have better service levels than others.
 
In the same boat as you with regards the site in thats its free. We went for a BOI mortgage and after getting approval in August to go ahead they have retracted the offer until further criteria is reached. I wish we started building then!

Anyway to move forward I have to value the land, get the house valued and finally value both the house and land. Once I have valued it then the bank will value it separately (crazy or what!). The bank will then lend 80% of the combined value of the site plus house. Hopefully we will get the second approval in the next month so we can finally start the build.

On a separate note I have a few friends who are struggling to get their final stage payment as the home they have built has moved into negative equity so that is something to be wary of.
 
krissovo said:
In the same boat as you with regards the site in thats its free. We went for a BOI mortgage and after getting approval in August to go ahead they have retracted the offer until further criteria is reached. I wish we started building then!
.
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Krissovo,

Did they retract the actual loan offer or did they add extra conditions to the approval in principle?
 
NorfBank said:
Krissovo,

Did they retract the actual loan offer or did they add extra conditions to the approval in principle?
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It was fully approved and then they attached the extra conditions. We do not have to re-apply though.
 
I got my self-build moprtage from ICS and have been very happy with them, - quick and easy to draw down funds etc..

Only problem I had was that they wouldn't give me a tracker (this was 18 months ago). I had to go with a variable rate at least until the build was complete.
 
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