Accelerator self build mortgages repayments

Davegeo

Hi all,

I'm looking at doing a self build and am pretty sure I want to go for an accelerator mortgage (like Buildstore offer), but cannot find out whether the repayments made are on the total amount that will be borrowed for the whole build or just on the amount that you have been lent for the stages so far.

The reason I'd like to know is that I might get in the position where I have bought the land but have to sit on it while I draw up the plans, get planning permission and more importantly get my 5 month old twin boys to an age where we're less reliant on being just round the corner from their grandparents! As a result I'd rather not have to pay repayments on the entire mortgage when I've only received part of it, at the same time as paying out for where we're currently living.

Does anyone have experience with these mortgages who knows what the answer is?

Thanks in advance!

- Dave

Thrugelmir

The mortgage monies are released in stages. With this product appears ahead rather than behind which is the more normal practice.

Bettycustard060

I think the question was, does he pay interest on the total agreed mortgage sum or the funds released to date. The logical answer to me is it would be on funds released to date - surely they don't charge interest on money they haven't loaned.... I may be wrong.

Davegeo

Betty - yes that's exactly what I'm asking, thanks for chipping in.

- Dave

kingstreet

You only pay on what you have drawndown at that time.

It would be a very unpopular product which charges you interest on money you have not yet borrowed.

Suggest speaking to BuildStore for clarification.

Dave_the_Ginger_Cat

It should be on funds released to date, but lenders differ. I would ask them