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New build and Motgage
Banjoboy
Posts: 8 Forumite
Hello. Just looking for advise before getting a finacial/mortgage adviser involved..... This is our situation :
We have a mortgage on our current property which we are living in. We have planning permission to build a new bungalow on land at the side of our house which belongs to us and mortgage Co. What I want to know is what are our options for financing the 110k build. We have no savings but I can afford to pay double our monthly mortgage payments until we sell the current house we live in and move into the bungalow. The money from the house sale will pay off all debt so we will be mortgage free on bungalow too. Can I get a interest only mortgage or remortgage our house to finance or do I have to apply for a self build mortgage? What are the best options as we will only be paying back the money for approx 12 months or until the bungalow has been built. Thanks
We have a mortgage on our current property which we are living in. We have planning permission to build a new bungalow on land at the side of our house which belongs to us and mortgage Co. What I want to know is what are our options for financing the 110k build. We have no savings but I can afford to pay double our monthly mortgage payments until we sell the current house we live in and move into the bungalow. The money from the house sale will pay off all debt so we will be mortgage free on bungalow too. Can I get a interest only mortgage or remortgage our house to finance or do I have to apply for a self build mortgage? What are the best options as we will only be paying back the money for approx 12 months or until the bungalow has been built. Thanks
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We're in the same position as you and found that remortgaging the existing house is more cost effective.Everything that is supposed to be in heaven is already here on earth.
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Yes that's what I have seen. Better rates than self build. Also would the mortgage Co allow you to borrow more for house build?0
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It is still based on regular mortgage affordability criteria - ie. salaries, rsther than development potential.
Splitting the title has taken *forever*. You need to get permission from your existing lender to release the land in order to split titles, before applying for the remortgage.Everything that is supposed to be in heaven is already here on earth.
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Interesting... Did you get a remortgage with a different lender to your current lender? We a are a bit frustrated with the land as we don't know which is best option. I will get in touch with our current mortgage Co and see what they can do in regards to a remortgage for us. How long has forever been?0
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Sell your house splitting the title in the process. Repay the mortgage. Live in a temporary rental. While using the remaining equity to fund the build.0
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Had thought of that one. Got 3 kid and 3 dogs.... Dogs are a problem for rental.0
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Then live in a temporary static caravan on your new land while building.0
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Interesting... Did you get a remortgage with a different lender to your current lender? We a are a bit frustrated with the land as we don't know which is best option. I will get in touch with our current mortgage Co and see what they can do in regards to a remortgage for us. How long has forever been?
Different company for a better mortgage rate.
6 months. It doesn't help when your previously reliable solicitor sits on it, despite being told it's urgent. I presumed we could split the title as part of the remortgage process. Not so.
Plus the land registry has a 6 month backlog; your solicitor has to write and ask for it to be expedited so you can apply to borrow.Everything that is supposed to be in heaven is already here on earth.
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