Self build mortgage

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 £200,000.


Financial details of my wife and I below:


My salary - £34,500
Wife's salary - £29,000


Monthly financial commitments - Loan payment £134 per month. We also have a combined credit card balance of £5,000.


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.


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


We have minimal 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.

Thrugelmir

The obvious question is what is the plot worth?

michaelmcw

We were told by the architect that the site was worth £40k-£50k.

Senior_Paper_Monitor

There is only one piece of advice I can offer - get a broker (experienced in self builds, but doesn't need to be the one with the obvious name) to get the initial planning and fund raising right.

We've done several over the years (not an advert) and they are all full of potential pitfalls.

Thrugelmir

michaelmcw wrote: »

We were told by the architect that the site was worth £40k-£50k.

Doesn't provide much in the way of security for the project you are planning.