Self Build Mortgages

[Deleted User]

What is the largest self build mortgage you can get currently and does it allow you to purchase the land with part of the money or do you need to do this firstly yourself?

By largest I mean 100% mortgage, 95% etc or something a lot lower which is what I'm expecting.

Mrs_Bumble

They all require that you have money to back up the build, stage payments are usually in arrears and last time I checked max ltv was around 75%.

Imp

http://www.buildstore.co.uk/finance/selfbuildmortgages.html

These people do upfront payment mortgage. I think they still do 95% mortgages, so you put down 5% of the value of the land, and they give you a mortgage for the other 95%. They then pay you in stages upfront, so you always have positive cash flow.

The downside to this is that, as they are lending on something which does not exist yet, there is a large insurance premium to pay in case you default and they cannot recover their money by selling your half finished home.

[Deleted User]

Imp wrote: »

http://www.buildstore.co.uk/finance/selfbuildmortgages.html

These people do upfront payment mortgage. I think they still do 95% mortgages, so you put down 5% of the value of the land, and they give you a mortgage for the other 95%. They then pay you in stages upfront, so you always have positive cash flow.

The downside to this is that, as they are lending on something which does not exist yet, there is a large insurance premium to pay in case you default and they cannot recover their money by selling your half finished home.

Who is the insurance premium with (the mortgage lender or a seperate company), is it a set fee or relative to the mortgage value?

Imp

[Deleted User] wrote:

Who is the insurance premium with (the mortgage lender or a seperate company), is it a set fee or relative to the mortgage value?

You are best off contacting them yourselves, but it is variable and based on the amount of money they lend you up front for each stage.