Will they give me a Mortgage?

johntriguy

Hello all

Hoping i can get some advice, the situation is as follows:

I currenlty live in UK, but i own a piece of land (own it outright, no mortgage, loan etc) in N. Ireland.

I am currently renting in UK, and do not have the greatest of credit histories.
I have never had any CCJ's etc, but did have some late payments and am currently on a debt management programme with the CCCS, and have been making all payments

6 years ago my debt was approx $27000, i have been paying off all my creditors through CCCS and current debt is approx $6500 due to be clear in April 2007!(interest frozen)

What i want to do is build a house on the land i own (have just recieved full planning permission)

So i will need a self build mortgage, the land is woth approx 75-90K and the cost to build the house will be 75-85K.

The completed value of the house will be 180-220K (from various estated agent quotes)

So i will want to borrow approx £80k to build the house, hopefully using the land as security? (can i do this)

My annual income as approx £40-43K

I have one credit card, but no other credit facilities, stopped applying a few years ago when i kept getting rejected!

What i am concerned about is

1. will a UK lender give me a mortgage to build in N. Ireland?

2. Will i get a fair crack at it, i can easilly afford it current rent is £750 month with another £300 disposable after paying creditors (£270), and can live rent free while house is being built, with parents.

3. My father (65) also said if needed, he would act as guarantor (owns his own house outright, value approx 200K) but i would like to aviod this if possible

4. assuming i can raise the money, i would like a mortgage with no/small early repayment penalties as after living in it for a year i want to sell the house and use the profit, to put on a house back in UK where we want to live.

Any advice, tips etc would be greatly appreciated!

John

MortgageMamma

Hi There,

There's shouldnt be a problem with what your trying to do,but your affordability could be questioned by a lender. I think the best thing to do is take advice at this early stage from a whole of market mortgage broker, as it could save you money in the long run if you find out this is not viable.

MM

johntriguy

Thanks for the reply

Not sure what you mean by my affordability might be questioned by a lender?

Do you mean can i afford the mortgage?

I would have approx £1000 a month disposable to cover the cost of the £80000 mortgage, surely that would be enough to keep any lender happy?

John