Need Money to Build

Linda12_2

We own our house and are about to build a new bungalow in the garden. What is the best way to borrow money to finance this. Will it be better to get a mortgage on the house and then pay it back when we sell? All our plans are passed by the council and we have about 17.000 to begin the groundwork but we need about 40.000 more

Robert_Sterling_3

When you have full planning to build a bungalow the value of the building plot can be used as security for a loan. Perhaps that is where the £17000 came from. If not you might like to go down that road.
Then as the building progresses you should be able to get further tranches of loan.

Linda12_2

Thanks Robert. The 17.000 that we already have is from money left to us by my Dad leaving it to me in his will 2 years ago

Rafter

Get hold of a self build magazine and you should find various lenders offering loans.

I think you have to get a surveyor in at various points to certify the work done so you can draw down more funds as you need them.

Once the building is complete you can then revert to a standard mortgage product which is likely to be better value.

The other alternative is to remortgage your current property short term which may be better value?

R.