Self Build Mortgages

in_debt_dan_2

Hello All!!!

Does anyone know of any good self build mortgages around at the moment? I don't have to purchase land as I already own it and have have £45k to put down as a deposit towards the total cost of build being around £180k.

Just wondered if anyone had any advice on self build mortgages suitable for myself.

Many thanks

Leon_W

Buildstore are probably the largest single facilitator of self build mortgages with stage payments etc.

Have a poke round their site (http://www.buildstore.co.uk/)

in_debt_dan_2

Thanks for the reply Leon! :-)

Do you happen to know if any mortgage lender sells self build mortgages or are they specific?

Kind regards

knuckledragger

in_debt_dan,
£180K build cost? That must be a HUGE place you're building (or solid gold fittings everywhere).

Leon_W

There may be someone along soon who knows a bit more about this than I as the last one I arranged was a fair few years ago.

Builstore are not the lender although you have to apply through them. They merely administer the mortgage on behalf of the lender. They will normally have a small panel of lenders who actually put up the funds.

I am not aware of any lender which will do this directly (although am prepared to be corrected) as I don't believe they can be bothered with the hassle. It is much better for them to farm the actually nuts and bolts of how funds are released and at what stages to a company like Buildstore.

Of course, the rates are slightly higher but once completed there is no reason why you can't remortgage to a mainstream lender (ERCs permitting)

Best of luck.

toonfish

Buildstore, as suggested are the best option in most cases for 3 reasons;

up to 95% loan to value
stage payments in advance, rather than after work is completed
no need to sell your curremt property during the build

However, as you have the land and deposit there are other options available e.g. Halifax, Norwich & Peterborough but much depends on your income, existing arrangments and predicted final property value.