Self build mortgage

michaelmcw

Hi folks, just wanted opinions on whether people think a mortgage application currently has any merit.


Income 1 - £35k
Income 2 - £30k


Site value (owned outright) - £40k


Want to borrow - £180k
House value on completion - £250k


Current savings - £11k
Current loans - £3.5k (£130 per month)
Current Credit Cards £4,400


What are the chances of a successful mortgage application?


Thanks,
Michael

Thrugelmir

Clear your debts and build up some more capital. Costs will more than likely overrun. You've no capacity to absorb the unexpected.

The finished value has no bearing. As it's speculation not fact. An unfinished project is worth a lot less.

SavingSteve

In my limited understanding of this you will usually be expected to have 20-25% of the cash build costs to hand before a lender will take on the risk.

Doesn't look like you fit the bill with your savings at present.