Self-Build? or another way?

daverowland

I am 34, you could term me as a "first time buyer", I am single and I am employed for a company that gives a reasonable pay (and should keep the job for the time being), however I have no real savings to use but my credit status is now pretty good now.

I have been working on getting planning permision for a build within the garden of my fathers house (which is in a different street to where i live with mum), we have been granted that permission with some minor terms that really should not cause us a problem. The planning permission is written in my fathers name and he doesn't mind me building a house next to him however my father is retired, he is 84 years old and all this is too much for him, so I am trying to do all this and benefit and possibly live next to him or even rent it out, I would be more at hand to him and possibly have a better quality of life.

My fathers property currently has a interest only mortgage which I understand has a repayment of £26K(need to check). but monthly repayments are very manageable to my father.

The land I suspect will be better transferred into my name to press ahead with building of this house as it would be fair that any of my investment that I put into the preparation and building of this site, i would feel safer that way.

Now, my questions:-
As bank of england interest rates have dropped, i seen fixed rate/trackers and other mortgages been branded about on TV, even with some types being removed from the market. Is it wise to look at these mortgages considering my situation?

Self Build mortgages, do you have to consider Deposits with them?
I have noticed that some of the websites online when you do a google search for "self-build mortgages", now these must be brokers as I have never seen a building society promoting such mortages.
What are the pitfalls?

With the land in fathers name and with an interest only mortgage present, I will need to talk to the mortgage adviser about what will happen? If I did not pay dads interest only mortgage off, then can I build this house? As the house was mortaged many years ago, the value of it has rocketed so I am concerned that the mortgage adviser would change dad's mortgage to something he cannot afford.

Possible suggestion:-
1: Land transfer the plot into my name, attempt to get a mortgage with the bank considering the build costs (say £70K) + paying off my dads £26K (£96K) and somehow stumble a deposit and then build this house in my name.

2: Land transfer into my name, Take advise of Self Build, take a risk with an internet broker(this worries me), on purchasing of Land step (pay dad £26K if allowed) and then take part payments as an when we reach targets.

Could do with some direction please? anyone?