Self Build Mortgage Advice Please (Scotland)

osnaburgh_2

We own the land and have £40,000 savings to put toward a build which will cost £160,000 so need to borrow £120,000. We intend to let the new build house after completion (it's an eventual retirement home 20 years from now!). We can afford £1000 per month repayment.

We have £150,000 equity in our current home (we pay £660 repayment with 18 years to run). We're reluctant to remortgage if we can avoid it as we are on a lifetime tracker rate - currently 0.98% and don't want to lose it.

Although our financial shape is good, we're struggling to find a self build mortgage because of our intention to let rather than live in our new home. Tried Buildstore, Ecology and Leeds so far.

Does anyone have any suggestions?

smitchy73

I'm not an expert in this field, but wouldn't it be better to build the new house and live in it, thereby getting the Self Build mortgage, once the house is built - live in it, then lease you're current house, not only do you get the money to pay off your mortgage on that one, you also get to enjoy your new house, rather than kitting it out for tennants to ruin for you.
As I say, not an expert in any way, just giving my opinion, hopefully it helps, and you may have already thought of this and discounted it for reasons.

I will just add very envious of you, my dream is to build by own house one day, looked at some of the self build people and shows, and loved the sips panels for building.

CloudCuckooLand

Have you asked your lender for "additional funds" rather than a remortgage?

Your existing deal may well stay on the decent deal. Only the amount you want extra might attract "today's" rate. Which you are going to have to pay somewhere else anyway...