We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Buying a house that's getting built
onlybt
Posts: 2 Newbie
Sooo I have put an offer in on a house that's getting renovated by a developer and I have bought it based on plans. It is an old barn that is currently been converted.
My question is how do I get a mortgage on a property that isn't complete?
Would a bank loan me money based on plans?
My parents have said they will give me the deposit so it will be easier to gain a mortgage with a bigger deposit, although this is going to be my second home and know the deposit has to be 25%
My question is how do I get a mortgage on a property that isn't complete?
Would a bank loan me money based on plans?
My parents have said they will give me the deposit so it will be easier to gain a mortgage with a bigger deposit, although this is going to be my second home and know the deposit has to be 25%
0
Comments
-
In the same way that you apply for a mortgage over a property which is still just a patch of mud in the middle of a Barratt building site - it can be valued "off-plan" and the lender either takes a view on the reputation of the builder / availability of NHBC etc warranties, or has it reinspected once construction is actually done and before your purchase actually completes.My question is how do I get a mortgage on a property that isn't complete?0 -
You won't be getting a mortgage - or buying it - until it's completed. Right now, you're just agreeing to buy it.0
-
If the developer wants staged payments through the build process, then you would be very unlikely be able to borrow to fund these - if that's what you're thinking. The deposit (typically 10% but often more with new builds - can be 25%) would be held by the builder's solicitor until completion and only released once the property is built.
You are presumably talking about the deposit that the builder wants, rather than the mortgage deposit. You're unlikely going to be able to get a mortgage on that easily because the bank has no asset to secure it against.0 -
I was assuming the "25%" was coming from (perhaps a misunderstood) max LtV of 75% on BtL mortgages.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards