Self-employed, house build, bridge loan & mortgage

Ruthsc

Hello there.
Just a general enquiry for some guidance regarding my plans for next year.

I am building my house next year.
Cost to build 55k.
This will be built on an already owned plot of land.
I am self-employed. My income this year will be 15k-20k and the same will be for next year also, so i'll have 2 years showing a decent wage.
Savings will be 15k

I am looking for a 40k mortgage, seeing as the house is yet to be built I would assume that a bridge loan is needed for the 40k and then this turned into a mortgage set against the house when complete.

Please could you guide me as to what steps I can take to ensure I get the ball rolling and the money secured?

Thanks for your time.
Best regards,
Ruth.

comeandgo

Is "income" your net profit or taxable profit or are you trading as Ltd company and that is your wages?

Ruthsc

Thanks for your reply. That's net profit and my wage.

Flashmanchop

Ruth,

good luck - Love self build.

What will the house be worth at the end?

then we can work out the LTV.

Flashmanchop

Ruth,

before I forget, buildstore offer mortgages, assuming you will recognise the name if you read the homebuilding & renovation magazine.

Typically you will need one of the self build mortgages, which release money on a % basis, typiccally 85% of build, but as you own the land they may offer a better LTV.

that means you will put money in as you build.

Ruthsc

Hi Flashmanchop...thanks for your reply. :jHouse will be worth 85/90k....not looking to sell it.
Know any high street banks willing to give a bridge loan to the self-employed?

Flashmanchop

Ruth,

who has valued the house? surely it will be worth more than that? have you had your construction costs vetted?

you wont need a bridging loan, the mainstream lenders for self build finance will give you a build release mortgage, and at completion you refinance onto a normal mortgage.

i would advise getting NHBC or Premier warranty.