Self Build

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.

michaelmcw

I also posted this in the mortgage thread but someone suggested I post it here.

PeterCash

Michael

Your circumstances are very similar to ours.

But it depends on your other circumstances not mentioned here. Ie do you have another mortgage and if so what do you intend to do with the property - sell up / rent?

We ended up getting a self build mortgage from the halifax. This mortgage will give you 75% of the estimated value of your property which (in theory) means you should end up with equity after all is completed. With this mortgage we were able to release 75% of the value of the site to start the build then when we ran out of funds we applied for a revaluation etc.

We had savings to help us start off. We are currently water tight and about to lay the floor and commence ground works. We have only had two valuations. One before ground was broken (based on site plus plans) and the second was just after the roof was installed.

Just out of interest what size is your house? Our Q/S projected ours would cost about £210k fully finished (that was about £87/sq foot) - Im project managing myself and hoping to bring it in a lot lower than this!

Good luck with your project!

Peter