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Self-build mortgages
Molson_2
Posts: 4 Newbie
Hello all. I was wondering if anyone could advise me where to start looking for a self-build mortgage (or indeed whether this is a good idea!) Are there brokers who have access to this market?
My wife and I are hoping to buy some land (haven't found any yet) and employ an architect and builder to design and build our first house. We thought this would be a good way to get on the expensive property ladder. We currently have a very low rent house (£50 pcm) that we can stay in for as long as we need whilst the house is built and so are in a good position regarding monthly outgoings and accommodation.
One of my concerns is that we currently have limited savings (£11000 - although we are now saving £2000 pcm), and knowing that house building is expensive, wondered whether this would be enough for deposit / fees /contigencies. We have worked hard to clear all our debts and are now debt free.
I read somewhere that you can have a mortgage released in stages so that you can buy the land, then build the foundations, then the house. This sounds ideal to us. Are self-build mortgages good value or do they have higher interest rates as they are seen as a greater risk?
Many thanks.
My wife and I are hoping to buy some land (haven't found any yet) and employ an architect and builder to design and build our first house. We thought this would be a good way to get on the expensive property ladder. We currently have a very low rent house (£50 pcm) that we can stay in for as long as we need whilst the house is built and so are in a good position regarding monthly outgoings and accommodation.
One of my concerns is that we currently have limited savings (£11000 - although we are now saving £2000 pcm), and knowing that house building is expensive, wondered whether this would be enough for deposit / fees /contigencies. We have worked hard to clear all our debts and are now debt free.
I read somewhere that you can have a mortgage released in stages so that you can buy the land, then build the foundations, then the house. This sounds ideal to us. Are self-build mortgages good value or do they have higher interest rates as they are seen as a greater risk?
Many thanks.
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