Mortgage for self build as a FTB

biglad

Me and my fiance are going to try and get a mortgage for a self build but there are a few problems that we may come up against and just wanted some advice

We have been given the land by her parents and we have dug the footings and all the concrete is laid. The plans are also drawn up and the council have given the ok to start the build.

The problems are that my fiance is currently studying and will not be qualified until August so we were going to look and get a mortgage just on my wage. She currently gets a bursary and works part time so would this be taken into account

I have a decent salary of £18000 + £4,000 from self employed work which is a guaranteed regular income, however five / six years ago I got into trouble with money and got a few defaults and 1 CCJ. I owed £24k and through payplan all my debts are paid off now and the CCJ is due to drop off my file 2012. I made full settlements on them all and they should all be showing as satisfied on my credit file within the next few weeks all being well.

We havent a deposit as such but was under the impression the land and planning permission could be used as a deposit / guarantee for the mortgage.

I have recently been able to get a normal bank account for the first time in 5 years. Also i have took out a credit card to help rebuild my credit and also got a mobile contract which I always pay on time.

Would our best avenue be to go to a broker or should we try the bank first? we are both with lloyds and they did say they tend to go on how you use your bank and the finances going in and out, not always just on the credit score. we dont mind having to pay a bit over the odds to start as we just really want our house build to start

Thanks

Colincbayley

Try buildstore.co.uk.
I have no idea about your past credit, but they were the best mortgage broker for a self-build when I used them a good few years back.

Good luck

biglad

thanks ill have a look

did you need to put a deposit or do they see the land enough as a deposit

Colincbayley

biglad wrote: »

thanks ill have a look

did you need to put a deposit or do they see the land enough as a deposit

I completed my self-build about 4-5yrs back now, so might be a bit out of date.
I needed to have the land, and the LTV on the build was 95%.
The main advantage at the time, was that the stage payments were made in advance (Most self builds only make the stage payments after the stage has been completed)

To be honest, at the time, it was really easy and straight forward. A really good experience to have gained.

biglad

Thanks, ive sent them a message asking for a call back

I think it is possible to get a mortgage with a ccj and defaults just hopefully through a broker

biglad

spoke to another broker today who is going to look into things tomorrow but she said there are some companies that would not bother too much about the ccj and defaults due to the time that has passed

mc33033

biglad wrote: »

We have been given the land by her parents and we have dug the footings and all the concrete is laid. The plans are also drawn up and the council have given the ok to start the build.

Coming in a bit late here, but did you get a building warrant/did anyone inspect your footings before you poured the concrete?

You generally need some form of insurance (NHBC/architects certificate etc) before anyone will lend you money on a build - this can be expensive to get if you have already started. You may be required to pay twice as much for this in this case, and also you may have to expose the footings for them to inspect. If you have photos etc it can be worthwhile trying to use these.

Did you manage to find a lender?

swanny65

Also coming in late here.

I assume you have secured some sort of finance. I self built 9 years ago and used Norwich and Peterborough Building Society for my mortgage. They were excellent and allowed us somewhere in the region of 3x our income as a maximum mortgage. The lender should use the value of the land as a deposit as it will have a value and you own it already. I had to buy my land and so my self build mortgage covered the land purchase and the build. My stage payments were made in arrears.

The used a chartered surveyors certificate and our architects liability insurance as the 10 years guarantee. I am now finding on remortgage some lenders will not accept these as acceptable guarantees. HSBC told me the 5 warrants you can have that they accept. NHBC and Zurich Homebuild were two i don't recall the others. Now I don't believe you will get an NHBC warranty unless you contact a registered builder to do the work for you which it looks like you are not. So that leaves Zurich and the others.....

I also agree with the Buildstore recommendation.

Finally, while not an ideal solution, you do have up to 3 or 5 years to complete the build, as you have started the build,(someone correct me if i am wrong) and you could wait until 2012 and apply for the loan then you may get a better offer...

Good Luck it was the best decision we ever made

biglad

We have had all the footings etc passed before the concrete was poured in so that is not a problem

Unfortunately could not get the mortgage due to my situation, however have been told that as soon as my fiance gets a job offer they will base the mortgage on that as it will be with the nhs.

we will be getting some builders in to do the main of the build so this should also cover us, just hope fiance gets job offer soon