£175,000 Mortgage??

tomstickland

The cost of build sounds expensive to me.

Jo4

tomstickland wrote:

The cost of build sounds expensive to me.

Can I ask how much you think it should be as they haven't got a clue and I wouldn't like to see them being ripped of?

tomstickland

I don't know enough about it TBH, but I read that housebuilders make a good mark up and I know someone who built a very well appointed house for under £100K.
I'd advise doing some google research on self builds and get some idea of the costs.

Jo4

Is there any builders on this site who could advise how much this type of build should cost?

toonfish

I had a client who built a stone cottage for £80K but every project is different - some spend thousands on gimmicks. The architect, or a builder should be able to give you a projected cost based on the specifications of the drawings.

Add 15-20% to this as a contingency

They would need to be earning somewhere around £50K between them to borrow £175,000

Jo4

toonfish wrote:

I had a client who built a stone cottage for £80K but every project is different - some spend thousands on gimmicks. The architect, or a builder should be able to give you a projected cost based on the specifications of the drawings.

Add 15-20% to this as a contingency

They would need to be earning somewhere around £50K between them to borrow £175,000

How do you work out what mortgage you could possibly get based on your wages, if there is 1 person applying for the mortgage and if there is 2 people applying for the mortgage?

Caveman_4

Jo4, Not sure about rates or anything. Will try and find out and post here soon.

£175K did sound a lot to me when you first posted as our friends costs about £120K and from what i recall there could have been savinsg of around 10-20K there as some features were a touch fancy, grantite worktops, built in hifi throughout house, oak stair case. The other thing in their favour was the husband has connections in the building trade so might have had a discount on materials and work. One thing i do know is that you claim back the vat on your materials as its a new build which is a nicely sized cheque if you part with over a 100K to build a house.

To be honest your friends need to contact more expert people than ourselves. OK so a £50K income should provide them with sufficient leeway to get the mortgage. I'd suggest they talk to a couple of mortgage brokers regarding self build/direct build mortgages and get a few quotes from builders.

I've had a quote from company called fortfield construction and have heard from others they are good to deal with.

Jo4

They plans have only been applied for but they are trying to think what is the next step. They want to make sure they can afford it and they don't know whether to do a self build since they have no connections with the building industry or whether to get a contractor.

Caveman_4

Jo4, First thing i'd do is get chatting to a few banks/mortgage brokers to get an idea what they'd be offered mortgage wise. Like others have said, £170K does sound a lot for what you described. So it might be the case they won't need that much.

At the same time ask around for reputable builders and get a few quotes in. Once you have a ball park figure then they can look into the finer details. I'll see what else i can find out in the next day or so from our friends.

Check out fortfieldconstruction.co.uk. We haven't used them yet but their quote is reasonable for the work i am getting done. They have done work(two storey extension) for other friends who were pleased with them.