Self Build on a Part-Built House

paul_mcdowell

hello,


first post


I have been trying unsuccessfully to obtain a self build mortgage for nearly two years on a property I bought that was part built.


yes I know there are al lot of complexities to self building and most I have overcome, but my last mortgage application failed due to the underwriters not wanting to take any risks. just checked out my credit references which are excellent with Equifax, and yet I still cant get anywhere near a mortgage.


is the new governments affordability criteria killing me? I am looking for around £65,000 on my own wages as I am now on my own.


Is there any way I can make my next application work? or should I look at bridging loans? The house on completion should b worth £250-300k so the ltv is 20%




any help would b great, really starting to ££££ me off.

PasturesNew

Mortgages are based on your income, not the value of the house and what you want to borrow.

Do you earn £10k/year? Or £100k?

Also, you say that's the value when completed, but during the reno stage it's often worth less than it's cost you to date.

Senior_Paper_Monitor

Its often over quoted on here (and I try to avoid doing so) but this sounds like one that quite simply needs an experienced broker (used to the unusual) to establish whether this doable (with full facts available - there is nowhere near enough here) and then progress.


Be prepared to pay a fee upfront as the commission on a loan (by whatever route) is going to be insufficient to warrant the work involved.

kingstreet

Is the issue you and your income or the property?

What do you mean by;-

"my last mortgage application failed due to the underwriters not wanting to take any risks"

as this is the situation with any mortgage application, the lender balancing the risk of the case presented to them?

Who have you approached? Direct or via a broker?

tvfreek

2 years trying to find a self build is a long time. In fact 2 years ago Halifax would have done this deal but the market has changed since then definitely a broker only proposal.

amnblog

What is probably killing you is having a half built property.

The vast majority of lenders don't do self build. Those that do do not like mortgaging when building work has started.

I suspect you may have been offered some options for commercial lending (rather than residential self build) but don't like the rates.