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checks do the banks do?


Mike_scotland

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Hi,

Who has had a self build mortgage? im just wondering is it just like a standard mortgage you show them your p60 for the year and 3 months wage slips or how does it work with a self build mortgage?

do they want a contract of employment or do they want a letter from your work saying your employed there or what?

Cheers,

Mike

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IIRC, they wanted the normal ID checks, plus proof of earnings in the form of pay slips and bank statements.  I don't think they needed loads of stuff about income, maybe three months worth.  They did do an employment check on my wife, IIRC, for me they were happy with my annual pension statement.  It didn't seem any more onerous than a normal mortgage in most respects.  This was from the Ecology Building Society.

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what is IIRC?  that  not problem JSHARRIS - me and my wife have decent income and we have already done a how much we can borrow from build store and its more than we need is what they will give us but i just had a thought of how agonizing the process is for gaining the funding.

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Just now, Mike_scotland said:

what is IIRC?  that  not problem JSHARRIS - me and my wife have decent income and we have already done a how much we can borrow from build store and its more than we need is what they will give us but i just had a thought of how agonizing the process is for gaining the funding.

 

 

IIRC = If I Remember Correctly

 

Sorry.  Just trying to help by giving the info that they requested from us when we applied, which is what I thought you were after.

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As declan says I had to provide costings for build. I presume they just check it to some m2 rate (contentious subject atm) and see it's within parameters. Also I was advised I would be best to say I would be living with family while building and not carrying on renting therefore increasing affordability. Mortgage fraud anyone?!

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4 hours ago, Mike_scotland said:

does the scottish building society not require a project manager on site ?

 

We have a RICS Quanity Surveyor as the project manager, he reviewed costings I prepared before the application was finalised. He has done three or four inspections/certificates and I'm nearly at finished first fix.

 

We agreed an hourly rate for any further involvement but to date this has not been necessary. 

 

Using a house designer, structural engineer and quantity surveyor. I will pay around £3,800 for professional fees. 

 

This includes drawings for planning and building warrant.

Structural drawings 

Inspections during build and review of costs and ticking the box as project manager

 

The only other indirect cost is when a valuation surveyor reports to the bank, but it is not much and I have only had one to date.

 

As I had bespoke drawings I was able to stick build our timber frame and this was done by two experienced joiners. Having the ability to review the timber and choose the fixings provided enough quality control whilst saving money.

 

If you are at an early stage my best advice is to become a sponge.

 

Soak up information everywhere, look at as many blogs as possible, historic threads, magazines, other local self build etc. 

 

Everybody on here as different reasons for self building and all the projects are bespoke.

 

 E.g. I'm 33 and can't afford a reasonable property locally so had to build out of necessity. The journey to date is documented here.

 

https://forum.buildhub.org.uk/blogs/blog/28-self-build-on-skye/

 

 

 

 

 

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