Self Build Mortgage

RupertBB

We were hoping not to have to go down this route but better to be prepared than leave to the last minute. We bought a property which is going to be demolished and have had approval for a 4 bed new build approved by planning. We bought the property for cash and have £200,000.00 in savings to pay towards the build but reckon we may need £100,000.00 to complete the job. Our mortgage broker says we would need a specialist builder on a self build basis.
There is so much info out there but would be grateful for any help, suggestions or recommendations anyone would have.
Many thanks
Paul 

[Deleted User]

a specialist builder?  Or a specialist broker? or a specialist lender?    Dont need a specialist builder,  just need someone qualified to oversee the build and issue the correct certificates.  
What information are you looking for? If you have any specific questions we will be happy to answer them 

RupertBB

Deleted_User said:

a specialist builder?  Or a specialist broker? or a specialist lender?    Dont need a specialist builder,  just need someone qualified to oversee the build and issue the correct certificates.  
What information are you looking for? If you have any specific questions we will be happy to answer them 

Dohh ! Specialist lender - a lender who is prepared to lend for a new self build where the land is already owned outright and there are some funds in place but further funds are likely to be needed.
Thanks
Paul

[Deleted User]

Not a particularly difficult case depending on the numbers. They just seem intimidating at the start. 
If you already own the land you can borrow against that, or you can apply and get approval for stage release funding.  
Has your broker got experience in this area?

Again, if you have any particular queries then happy to answer but i dont fancy just typing everything i know about self build mortgages as that is likely to be a waste of both of our time.

It comes down to the lender having something to secure a loan to.  Land, foundations, half built house etc are all fine.  Affordability assessment is exactly the same as any other mortgage.   
Most people get approved for the max and then draw what they need subject to lender limits

RupertBB

Deleted_User said:

Not a particularly difficult case depending on the numbers. They just seem intimidating at the start. 
If you already own the land you can borrow against that, or you can apply and get approval for stage release funding.  
Has your broker got experience in this area?

Again, if you have any particular queries then happy to answer but i dont fancy just typing everything i know about self build mortgages as that is likely to be a waste of both of our time.

It comes down to the lender having something to secure a loan to.  Land, foundations, half built house etc are all fine.  Affordability assessment is exactly the same as any other mortgage.   
Most people get approved for the max and then draw what they need subject to lender limits

You're quite right - we paid £360k for a bungalow and decent sized plot and with no mortgage. The bungalow is ready to be demolished and planning has been approved so need a lender who is willing to lend £100k on a build likely to cost £300k with the property to be worth around £700k at the end. Watching Building The Dream we are not so wholly dependent on a stage release but best not say that to any potential lender.
Thanks
Paul

markchip

Did you find a decent lender by the end of all this?  Any tips or names you can pass on to others in a simi;ar situation?

Cheers - and Happy New Year!!