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Re mortgage to fund land purchase
mikeelawson
Posts: 5 Forumite
I guess I am in the fortunate position of having paid off my mortgage, however I am looking to my next house and I want to buy a piece of land.
The plan is to release about 60% of the value of the house to buy a piece of land now. I want a repayment mortgage for the equity release and plan to pay this off over a three year period on a repayment mortgage. I plan to live in my current house for the next three years and then sell this to fund the build of the house. I would be grateful for advise on:
- What are the best mortgage options
- What can I do about expected early repayment charges
- Has anyone done anything like this and their experiences
Regards,
Mike
The plan is to release about 60% of the value of the house to buy a piece of land now. I want a repayment mortgage for the equity release and plan to pay this off over a three year period on a repayment mortgage. I plan to live in my current house for the next three years and then sell this to fund the build of the house. I would be grateful for advise on:
- What are the best mortgage options
- What can I do about expected early repayment charges
- Has anyone done anything like this and their experiences
Regards,
Mike
0
Comments
-
Remortgaging to raise funds for the purchase of land should not be a problem, although I doubt you mean you will be repaying over 3 years? presumably you will sell your existing property and repay the capital from that? I would recommend taking the mortgage over as long a term as possible to keep your commitments down as self build are notorious for running over budget.
with regards penalties go for a deal for a shorter period than you anticipate, possibly even a deal with no penalties.
Presumably you will not need the full amount initially? so if you take an offset, you can use the surplus funds to reduce your mortgage payments.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I am looking to pay the released money off in 3 years in chunks. Any recommendations re mortgages?
Regards,
Mike0 -
Offset? or a deal with no ERC'sI am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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