self builder - mortgage needed

skyeboy

I'm building a house on the Isle of Skye, Scotland, have £100,000 of our own money but need another £50k to finish the project. Me and my partner are both self employed, my books have been declining year on year and now I'm earning around 10k annually, my partner has only been self employed a year so banks won't consider her income (it's low...). having previously spoken to some brokers I was told that without a salary we wouldn't get a mortgage. the final value of the finished house should be at least £220k (the land alone is worth 100k), so it seems to me it would be a pretty safe bet for the banks to give us a mortgage, no?
Would welcome advice on where I should be looking or who to talk to!

jennifernil

You could try here....

http://www.buildstore.co.uk/finance/

but if you do not have the income to service the loan, I think you will find it difficult to borrow.

Thrugelmir

skyeboy wrote: »

the final value of the finished house should be at least £220k (the land alone is worth 100k), so it seems to me it would be a pretty safe bet for the banks to give us a mortgage, no?

Banks don't bet when they grant mortgages.

Though you appear to have done in commencing the project without sufficient funds.

Anyway of putting the project on hold until you earn some further funds?

GMS

If you don't owe anything on the land you could try development finance. This may enable you to finish the project but you would need to sell when completed. Without sufficient income you could not refinance.

skyeboy

we have nothing owed on the land and no other debts. We have also this year started up a bike hire and repair business, plus I'm a partner and majority shareholder of a Ltd co. with a small but consistent yearly profit.
I spoke to buildstore and they were pretty un-interested in general, saying that without 6 months in a salary we would be unlikely to be approved.
Yes, we started building knowing that we will run out of money before completion - it was the right time for us, and if there's no other choice I'll go out and work a salaried job for 6 months to get the mortgage, but as we are living in a caravan with a baby, it's a priority to find a way of completing the build now!

Another option we are considering is running the house as a B&B - could we be looking for a business loan/mortgage to find the funds?

dimbo61

Could you get any help from the Scottish government as you are moving onto the island and setting up the new business ?
Grants, for cavity wall insulation, new boiler, loft insulation, triple glazing etc even solar panels on the roof!!
New business start up loans or grants
As you are starting a bike hire or B&B business any help from the scottish tourist board ?

Simon_gloster

The longer this story goes on the less residential it becomes. Next it'll be disclosed it can only be sold to non europeans, into hula-hooping......and 2 foot tall.

skyeboy

Simon_gloster wrote: »

The longer this story goes on the less residential it becomes. Next it'll be disclosed it can only be sold to non europeans, into hula-hooping......and 2 foot tall.

Sorry Simon, you've totally lost me there..