Self building to reduce my mortgage

matthewpoll13

Hello

I'm looking at the possibility of buying a plot of land in the next couple of years, & building a 3 bedroom house on it. What percentage do people typically save, when compared to just buying an identical house of someone else?

Builders, plumbers & electricians etc would need to be employed to complete all the work.

Thanks!

cb4fwh

Hiya

Do a google - there are lots of self build forums out there that you will give you the information that you need.

Lenders tend to lend money using a phased approach i.e. 25% to buy plot, 25% for groundworks etc.

I think that builders tend to work on the basis of 33% land cost, 33% materials, and 33% labour.

If you have any savings or equity, then the amount you need to borrow will decrease.

My advice would be to save up enough money to buy a plot, as alot of these are sold at auction these days & you would need to complete 28 days after the auction.

Do bear in mind that building plots do not come up regularly! Keep your eye on rightmove, look for possible council sites that may be available as the government have recently told their councils to make amy council owned brownfield sites available to self builders...

And good luck! I've been looking for plots for several years now, and no joy so far...