New Build Mortgage if I own the plot

dufcuk

I hope someone may be able to advise.

I'm looking to buy a new build in Scotland. The contractor has his schedule set for a July/August finish and entry. I'm renting currently so seeking to bring this forward. If I buy the plot from him now, and enter a construction contract they will finish it in early February (the cash flow being provided by the plot purchase pushing them on).

My problem is, if I fund the plot in full, can I get a standard new build purchase mortgage, I can't get a lender to fund this. The finished house will be worth more than my purchase price, and the loan value would be in the region of 70-74%.

Self build mortgages may be possible, but seem far too slow to organise and manage, with far higher charges too.

Thanks!!

amnblog

You cannot feta standard mortgage on a property that does not yet exist. That is what self build mortgages are for.

It is either that, or development finance - you will find the self build mortgage easier to arrange and less expensive.

Thrugelmir

Seems easier to wait for the property to be finished next year.

If the winter turns for the worse. Is the property really going to be finished in February some 6 months earlier.

dufcuk

Thanks amnblog & Thrugelmir. Self build seems the way forward although Buildstore were saying 12 weeks minimum to get it off the ground! Hey ho...

SprocketRocket

Avoid Buildstore like the plague!!!!! We have been in the process of a mortgage application with them. The initial phone calls and getting offer in principle was fast and efficient, however they then pass you to an admin team. To say they moved at a glacial pace would be too kind.
The mortgage service seems to be a sales tactic for all their other services. Site insurance, a very long sales call about life insurance, income protection insurance and about any other insurance you can think of.
The real icing on the cake is the additional security fee! You pay over £1000 for a supposed insurance to protect the lender. It is only this broker that seems to have this so with the £95 fee plus £500 then this premium they are making over £1500 from you application! That is a lot of roof slates!
I would recommend you try Bath Building Society. Excellent service and very efficient. Go direct and save your money!!

Lucyjlucy

I have to agree with SprocketRocket! To those reading this post now or googling Buildstore in the future.. Avoid at all costs!!! very unprofessional and 1 disaster after another! Which they seem to blame on everyone but themselves. Have ended up reporting them to the ombudsman today!

Thrugelmir

Lucyjlucy wrote: »

Have ended up reporting them to the ombudsman today!

For what precisely?

amnblog

Arranging self build mortgages is painful and is slow.