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Self build mortgage calculator


SarahG
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I was just wondering how reliable these calculators are. I used the standard Santander mortgage calculator and it said we can borrow £30k more based on our income than the ecology calculator for a self build mortgage. I wonder if it is the case that you just can’t borrow as much on a self build mortgage? Anybody know if that is the case?

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38 minutes ago, SarahG said:

I was just wondering how reliable these calculators are. I used the standard Santander mortgage calculator and it said we can borrow £30k more based on our income than the ecology calculator for a self build mortgage. I wonder if it is the case that you just can’t borrow as much on a self build mortgage? Anybody know if that is the case?

You never want to borrow the max on a self build because there will be hidden costs and contingencies are soon eaten up. Maybe ecology are being smart here and building some protection in.

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I'm in a similar position to you with regards to seeking potential funding.

 

My understanding regarding Ecology is that they based their lending purely on affordability (you're monthly salary - committed expenditure, using their calculator) vs other lenders who take into account salary minus their own modelling of what expenditure usually is (generic). Once you get to the application stage I should imagine they will all converge to align closer with the Ecology number.

 

Out of interest, what type of salary multipliers do you seem to be getting? Self-build mortgages seem to be a minefield! 

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Risk is higher with a self build Vs residential, hence higher interest rates, lower LTV and less capital offered. You don't really know how much they'll offer you until you've done all your cost estimates, valuation and application.

 

(I think ecology have us the best offer of the ones we approached)

 

 

Edited by Conor
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With ecology we get approx 4.6 x income and with Santander about 4.98. I have factored in a 10% contingency to my budget, which is a lot more than the 30k difference. Do ecology ask for certain contingency does anyone know?
That’s good to know ecology are one of the best, I have a friend who is a mortgage broker, so she will help us. I’m trying not to bombard her with questions as she is so busy at the moment!

We are currently going through pre planning and trying to save as much as we can! At least we have 3 years once we get planning of we need to save more..

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