Self Build Mortgage - NI

michaelmcw

I have recently been granted planning permission for a new build house on a site I inherited a few years ago. The house will be 2 storey with detached garage. The QS estimates a build cost (including fitted kitchen, bathroom etc) of £190,000.


Financial details of my wife and I below:


My salary - £34,000
Wife's salary - £28,500


Monthly financial commitments - Loan payment £140 per month. We also have a combined credit card balance of £6,000 and an overdraft of £750 that we dip into some months.


Now that we have all architect fees etc paid we have a surplus of around £1,200 per month that we will use to lower credit card debt and get rid of overdraft.


Our credit reports are clean, no missed payments in last 6 years etc.


We have no savings and intend to use the site as equity to secure the mortgage. How likely is it that we will get a mortgage? Who is the best lender to approach?


If there's any other information required to inform responses please feel free to ask.

saverbuyer

michaelmcw wrote: »

I have recently been granted planning permission for a new build house on a site I inherited a few years ago. The house will be 2 storey with detached garage. The QS estimates a build cost (including fitted kitchen, bathroom etc) of £190,000.


Financial details of my wife and I below:


My salary - £34,000
Wife's salary - £28,500


Monthly financial commitments - Loan payment £140 per month. We also have a combined credit card balance of £6,000 and an overdraft of £750 that we dip into some months.


Now that we have all architect fees etc paid we have a surplus of around £1,200 per month that we will use to lower credit card debt and get rid of overdraft.


Our credit reports are clean, no missed payments in last 6 years etc.


We have no savings and intend to use the site as equity to secure the mortgage. How likely is it that we will get a mortgage? Who is the best lender to approach?


If there's any other information required to inform responses please feel free to ask.

You're severely limited in NI when it comes to self build.
A few friends have built recently and used Ulster and progressive.


You'll need a sizable chunk to get you off the ground. I'll find out, but I don't believe they were able to use the site equity to get started.

michaelmcw

Thanks. Ideally we'd like to start straight away but we're not sure of the process.

saverbuyer

michaelmcw wrote: »

Thanks. Ideally we'd like to start straight away but we're not sure of the process.

I'd post in the NI forum. There are posters there who have completed builds.


The people I know took their time. I assume because of finance. You're affordability look a bit tight too, can't see you starting ASAP.

michaelmcw

Anyone else able to provide any advice?

AllyT90

Hi All,

I have a rather strange situation regarding a self build mortgage.

My partner took out a self build mortgage about 7 years ago to buy the site and build on it with the intentions of selling it on when it was finished.

However after buying the site and starting the build, the recession hit and the house was left unfinished.
He is still making interest only payments on the mortgage but only ever drew down the first stage payment.
Is there an expiry date on this or could he still draw down the remainder of the mortgage now to finish the house??

Any help would be greatly appreciated.

Ally.