Buy with a tracker mortgage then move to a self-build?

[Daisychain]

We've found a a prefab house on a beautiful plot of land that we'd like to buy. 

 

Our original plan was to apply for planning permission and get a self-build mortgage which would allow us to demolish it and build a "standard" house in its place. Unfortunately the vendor won't accept our offer on that basis so we're wondering if we can buy it on a tracker mortgage and then quite quickly switch to a self build mortgage once we own it? Any advice gratefully received!

[recoveringbuilder]

Don’t know how successful you’d be finding a lender for a prefab house, there are a few in our area and when any of them have been on the market they have been advertised as cash buyers only.

[Bitpipe]

Can't understand why seller won't accept your offer irrespective of the mortgage type, it's all the same money in the bank for them, isn't it? Unless they're not prepared to wait for you to get PP and organise the self build mortgage, which can take a bit of time.

 

Your plan is OK, pretty much what we did, but could you struggle to get a mortgage on the existing dwelling?

 

Just be wary of redemption fees and do not be tempted to self build on the tracker without permission of the lender (which you likely won't get) as they are within their rights to ask you to redeem the mortgage if you eliminate their equity (the prefab).

 

We were a bit naive in that respect and took out a 5 year deal then were refused permission to build by the mortgage holder. They went back and forth over 12 weeks to decide and in the end released us from the deal as goodwill, we paid off the mge with our build fund and then took out a selfbuild with Ecology. Added some delay to proceedings but it all worked out ok in the end.

 

 

[ProDave]

As above, I would be surprised of you can get anything other than a trivial value mortgage on a prefab.