Self Build Mortgages

p24296

Hi, 1st timer here and looking for a bit of advice. We are hoping to start our own self build in next few months and are trying to organise finance. Does anyone know what financial institutions in NI are favourable towards self builders? I have spoken to one and it would only take us on if we used the same registered building contractor for the whole build. We have a small existing mortgage which reduces the amount we can borrow so we're not sure if we can afford a contractor as their fees were putting an extra 40/50k on the cost of the build. Is there any way that we could borrow against the existing mortgage(there's loads of equity in it) and then pay that one off and take a new mortgage out against the new house when it is finished? Thanks to anyone that can throw some light on this for us.

jjd

I would look into the NHBC 'solo' cover which should be acceptable by most banks for lending money.
It is a warranty and insurance policy that covers the house from major defects for 10 years. Most banks require either CRL, NHBC or an architects certificate, although I wouldn't go with the latter as you don't really have much 'come back' if it all goes wrong. Most good builders are NHBC or CRL registered although I know that there have been some problems recently with CRl as they are quite new to Northern IReland. I would get some quotes off builders though as many are short of work and will probably do the job for a very reasonable price.

If you have NHBC cover in place i'm pretty confident you shouldn't have a problem getting money as you are in a good financial position. Sometimes banks give out stage payments when each section of the house is completed.

If you can wait a while there is a self build show in belfast in February at the kings hall, will probably have all the info you need.

CL

We are in the middle of our self-build and priced several lenders and ended up getting our mortgage from the Leeds Building Society. I'm not sure if you are in the same position as us, we have no mortgage for the land, so the building society used the land as equity and we do not need to have any inspections od the build and can get the mortgage released to us in as many installments as we like and whenever we like. Where are you based?

Wolverine77

I build last year and I also used Leeds Building Society but found them very unhelpful when releasing the money in stages and not valuing the property at the amount to allow the correct percentage at that point in time!!

I am now with Edeus which I am quite sure they are not taking on anymore customers.

nadnad

we just finished our self build in february and we went to buildstore they were vry helpful and esp. in your situation they can provide mortgages which give you installments BEFORE each stage of the build rather than after, and if you are managing this build yourself and not using a contractor then this is very helpful - their website is http://www.buildstore.co.uk/finance/faqs.html and phone number 0870 870 9991. We found them very easy to use and it was the only way we could have built our house.

p24296

Hi, thanks to all of you for your replies. We're based outside Newry in Northern Ireland and own the land so we are looking for funding for just the build. Not sure if the Leeds BS extends into NI but will look into that.

Will check out the Buildit website as well to see if that sheds any light on possibilities as well.
:T

pk83

I'm currently getting my building control plans completed and will hopefully start building next year - do you know what the going rate per square foot is without going through a main contractor? Will be looking into mortgages soon as well.

Many thanks,

PK

nadnad

well we had a main contactor and it was £52.50 per sq ft. very reasonable we thought. we built a 2000 sq ft bungalow and got the attic ready for conversion (floor down, skylights in, electrics done and plumbing left ready), together with a double garage with an upstairs for £125k. However we added various extras to the tune of £160k total. And on that subject can I make a recommendation for triple glazing and underfloor heating - fantastic the house is always warm and the heating is rarely on, and triple glazing isnt much more expensive than double.

CL

nadnad wrote: »

well we had a main contactor and it was £52.50 per sq ft. very reasonable we thought. we built a 2000 sq ft bungalow and got the attic ready for conversion (floor down, skylights in, electrics done and plumbing left ready), together with a double garage with an upstairs for £125k. However we added various extras to the tune of £160k total. And on that subject can I make a recommendation for triple glazing and underfloor heating - fantastic the house is always warm and the heating is rarely on, and triple glazing isnt much more expensive than double.

Great, we are having underfloor heating and have just asked for a quote for triple glazing.

Where did you get your windows Nadnad?

By the way we are in NI so yes the Leeds Building Society will lend here.

p24296

We've only had 1 quote so far and it worked out at £65 per square foot, that didn't include kitchen, bathroom or stairs. Ours is a storey and a half with integrated garage, approx 2700sq ft in total. My friend is in a similar situation and has had a quote which works out at £45 per sq foot but it doesnt include her windows or woodwork.
Talking about underfloor heating, we had included that in the house but each of the builders that we have spoken to are totally against it saying that it's really hard on oil but I would have thought that if your house was really well insulated as ours will be, then there wouldn't be the need to have it on constantly and so it would be easier on oil.
Thanks for the advice on BuildStore, I emailed some details through earlier this afternoon and have had two emails back within two hours to arrange a telephone appointment.

pk83

That's very reasonable for a contractor nadnad - does that include kitchen & bathroom as well?

Hi p24296, is £65 per sq foot through a contractor? I'm trying to work out the difference in price between going with a contractor and getting a builder to do blockwork and roof and then getting the rest of the trades in myself.

Thanks,

PK