mortgage on land with planning for mobile home

muffinman

Hi everyone,
I am new here and have a fairly urgent question. We are FTB'S and have found a 3 acre plot with hardstanding ,water, electric, phoneline etc . The previous person had a mobile home on it and as we cant afford a house with land this is our dream place. We need to find a mortgage company who will lend us about £70000. Both myself and partner are self employed and earn about £22000 a year with family credit included in that figure. We have worked out that we can pay 4-500 per month on mortgage. We have no accounts, although we write down income each week and outgoings. Do we need an accountant or are our little books enough? There has been a lot of interest in the land and it is our once in a lifetime opportunity to afford our dream so any pointers towards what we can borrow from who would be much appreciated.

Ian_W

Hi muffinman & welcome,
I've no wish to piddle on your parade, particularly not on your 1st post, but I don't think mainstream lenders will lend on anything other than standard construction houses or flats. You may be able to secure a loan against the land from a specialist lender but it will only be up to a % [maybe 80-90%] of the value of the land, so if the £70K you need includes the land and the cost of buying a mobile home to site on it, you'll struggle there as well.

Sorry to sound so pessimistic about your dream and hopefully one of our very helpful mortgage broker contributers will be along shortly who may advise differently.

MortgageMamma

No Ian, I totally support your view. I came across a similar situ last august and couldnt place it. Perhaps one of the more experienced brokers may know more on this.

Lisa

AndrewSmith

You will only get a 'mortgage' on land for the intention of building aproperty. Then it will be released in pre-determined phases as the build progresses.

I'm afraid it's a case of calling your bank and discussing it with them to begin with.

Andy

muffinman

thanks for replies, so if we could get permission to build a really cheap log cabin, ie., £20000 which i have seen advertised in papers/mags etc would the ecology building society or something similar finance us.If the land already has planning and amenities is it possible we could get planning for this.

AndrewSmith

I think that is somethig you would be best speaking to ecology direct about to be honest.

Get as much info about the Log Cabin as you can then ring them. Also ask the company providing the cabin (if they are UK based) who will lend on it.

Andy

muffinman

cheers Andy, will do that monday. Are they the only ones who will consider it or are there other lenders we could try.