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Need a loan for building plot

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My house is worth about £180k, and has no mortgage (well, 50p outstanding so that Building Society hold my Deeds for free!). I want to buy a plot of ground to build another home on, and need about £50k, for about 12-18 months.
What would be the best (ie least cost!) way to do it?
Remortgage, bank loan, ....
Any advice gratefully received.
I say what I like, I like what I say!

Comments

  • Fairdo_2
    Fairdo_2 Posts: 442 Forumite
    A company called Buildloan may be right up your street on this one. I am not advertising, so be aware that there will be other options out there, but Buildloan are a specialist packager dealing with self build and can deal with several lenders on a basis that you can borrow what you need and pay for when you actually need it.

    Several lenders will deal with self build projects, but many lend on an "arrears" basis (where the lender gives you the money after each stage is completed and you have probably paid for builders and materials), whereas Buildloan can arrange lending on an "advance" basis, where you get the money ready for the start of each stage.

    They can lend up to 95% for land costs and 95% for building costs.

    They can have you on a long term rate, or short term without redemption, so that you could remortgage after completion or pay it off.

    God it sounds like an advert doesn't it!

    For balance, I believe Skipton, Norwich & Peterborough, Accord Mortgages, Amber Homeloans and Halifax also deal with this type of project. (Possibly many more)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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