Impact of having a second 'self build' mortgage

Robson1978

Hi - I am looking for some guidance. We are looking to move home at some point next year but in the meantime I am looking at a project to buy a small plot of land and build a couple of properties (to then sell on) using cash and a self build mortgage to finance the project. My concern is that we may not have finished this project by the time we want to move house ourselves and I am nervous that still having the self build mortgage will limit how much we'll be able to borrow on our main mortgage. We have the plans in place to show that the overall self build project is a profitable project barring any major unforeseen events, but I'm not sure if this will be enough to appease the mainstream lenders.

Any thoughts appreciated. I will probably also ask my existing lender the same question but wondered what people thought the general response would be from most lenders.

Regards
Robson

amnblog

This is not a self build project Robson.


You need commercial lending for this.

kingstreet

Self-build is for would-be occupiers of the finished build.

You're a commercial developer and would need commercial finance as amn has just got in first has said.

Robson1978

Thanks both - I knew this wouldn't be s straightforward as I hoped!

Regards
Robson

Thrugelmir

Robson1978 wrote: »

We have the plans in place to show that the overall self build project is a profitable project barring any major unforeseen events, but I'm not sure if this will be enough to appease the mainstream lenders.

Until you finish the "project" then the profit is indeterminable. Lenders aren't interested in speculation. They lend money not build houses.