Mortgage advice

[Nemesis]

I'm wanting to self-build, and I have a few questions

1) Can anyone recommend the best approach to a self-build mortgage? Go via a broker, search online? Is it best to get as many applications in as possible?

2) Is it best to buy the land with a lump cash sum and then apply for a mortgage on the house and building costs, secured against the land? ... or get the mortgage before buying land / starting building?

3) Can you get a mortgage on land without any planning permission? This is the land I am looking to buy, because you can get a large plot for a lot less money

4) What % mortgages are available for self builders? I need 80%-90%

[chip]

I think you will REALLY struggle to find anyone giving a LTV higher than 75% on a self build in the current climate.
90% mortgages are getting relatively hard to come by even on a built house, where as in the past 105% was easy.

[Nemesis]

I think you will REALLY struggle to find anyone giving a LTV higher than 75% on a self build in the current climate.

That makes sense.

I'm happy to wait a couple more years for the banking sector to recover, and lending criteria to improve.

[Tathan]

They usually release the money in stages so they know that should it all go tits up, they have only invested what they can get back by selling. Usually they want deposit but that includes buying the land. If you own the land then you might be able to use this to secure it.

LTV on self build is a bit different, because the cost of building it is not the final value - the open market value is gonna be higher than what you borrow, unless you **** it up which is probable having seen what you do to cars lmao

[Nemesis]

They usually release the money in stages so they know that should it all go tits up, they have only invested what they can get back by selling. Usually they want deposit but that includes buying the land. If you own the land then you might be able to use this to secure it.

LTV on self build is a bit different, because the cost of building it is not the final value - the open market value is gonna be higher than what you borrow, unless you **** it up which is probable having seen what you do to cars lmao

I was waiting for that... lol

Market value is between 130-170% of build cost including land, based on the house I want in the area I want. But as you say, if I lose interest I doubt anyone will want a house without a roof or staircase.

[Tathan]

You'll probably spend two years building it, live in it for a night then sell it.

[Kev_G]

Id go speak to a few professional people in the mortgage industry. Im off to see a chap local to me who is fantastic at all this to see my options for when i get a new job as im taking a big pay cut but ive a larger deposit than when i spoke to him in december

[Melv]

You'll probably spend two years building it, live in it for a night then sell it.

lmao

[j17sparky]

I'm wanting to self-build, and I have a few questions

1)...Is it best to get as many applications in as possible?

No, every application/mortgage in principle puts a black mark on your credit history. There's nothing stopping you talking to mortgage advisers and getting a "mortgage certificate" which is basically just an informal mortgage in principle based on the details you have given and nothing coming back untoward.

Personally I'd go see an independent adviser as they have access to deals which you don't see on the web. They will charge you a fee once you agree to get the mortgage but for me at least I saved around £1500 in upfront fees so shelling out <£200 on the advisor was well worth it - just bought a house 2 weeks ago.

[Nemesis]

Good advice thanks everyone. I'm going to start making enquiries

[MSG]

New Project for Ben, good luck mate, I a m just as excited and I hope it goes all well for you and no hicupps.

[Nemesis]

New Project for Ben, good luck mate, I a m just as excited and I hope it goes all well for you and no hicupps.

Thanks Mike. I'll do a thread when I get started!

PS - sent your header tank cap yesterday mate

[chip]

Breaking for spares : House

Layout is specced for 4 bedrooms but currently only running 2 bedrooms.
Many unique features, most of which dont work
Kitchen will probably fit in a flat where it will give better food generation performance than in a big heavy house.

[Tathan]

PMSL

This is turning into a sledging so I'll contribute by asking pops when I next speak to him as he's a mortgage surveyor/valuer and knows stuff. He's deals with this sort of thing all the time.

[Nemesis]

Bastards lmao

[Kev_G]

shall we expect a thread / rant about someone who buys the house off you but then claims its not as described as he isnt happy with the purchase like the bootlid on corsa sport?

[BlackIce]

any chrome in said house?

[vxlgsi]

bit of advice, you must must must get a **** hot architect. The building industry is a complete shambles.

[Scary_Fish]

Have fired original post over to my good pal who is mortgage advisor. He replied briefly saying yup yup knows a lot about self build and will reply at length when he has time

[Scary_Fish]

1) Can anyone recommend the best approach to a self-build mortgage? Go via a broker, search online? Is it best to get as many applications in as possible?

Says mortgage chap - Ask me. I can see what can be done here or know what other lenders may
look at them as have dealt with self build in the past.

2) Is it best to buy the land with a lump cash sum and then apply for a mortgage on the house and building costs, secured against the land? ... or get the mortgage before buying land / starting building?

You can get the mortgage before buying the land. They will lend up to
75% at each of 4 stages. first stage being 75% of the purchase price of the
land.

3) Can you get a mortgage on land without any planning permission? This is the land I am looking to buy, because you can get a large plot for a lot less money

Better without planning permission as if the land has planning
permission and it expires, the bank then have less security as there is
less value without planning permission

4) What % mortgages are available for self builders? I need 80%-90%

They then value again when bricks and roof on and top up the mortgage to 75% of the value. Then the same when all complete. So in effect you do the work and then get the money from the bank.



Let me knwo if you want contact details matey - this chap is good mate and very fair

[Nemesis]

Thanks for that and yes please PM me his details

[Scary_Fish]

Thanks for that and yes please PM me his details

Done and done

[MSG]

Thanks Mike. I'll do a thread when I get started!

PS - sent your header tank cap yesterday mate

Received the cap, many thanks mate, much appreciated, any charges let me know kindly. Thanks Mike

[Violet]

Nemesis' house, two years from now:

[Nemesis]

Liverpool, where I'm from like:

Corrected that for you mate lmao