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Mountain of Equity....no way of getting at it...


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On 03/01/2022 at 16:51, harry_angel said:

@Mr Punter been with the lender 6 years, not missed a payment or a deadline.

 

Happy to be proved wrong but my experience is contrary: two self-employed people? Providers are Not. A. Fan.

 

And the mortgage, while affordable, is undeniably big.

 

One option would be to find an interest-only lender though, as then the stress test might be much easier to pass.

Yep; if you are SE and have big debts no one wants to be your friend.

 

I would use a recommended broker as there are ways to "work around this" - as a for example ;remortgage as a BTL . This may avoid some issues you are having but may indeed create others. It's all a bit of a game ...

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+1 on approaching an experienced mortgage broker  - it's a fluid environment and lenders have different and changing criteria.

 

Also +1 on talking to your current lender. Even if you choose not to, be very, very wary of doing anything 'clever' as if they find out (small but not zero likelihood) they can ask for immediate redemption of loan which will force you to sell. 

 

We naively took out a 5 year fixed rate residential mortgage on the property we purchased to demolish while living in it and in PP limbo.

 

When we got PP and a buyer for our BTL house we realised that we should probably tell the mortgage provider that we planned to demo and rebuild. We considered maybe not telling them but we'd had a few strong objections from neighbours during planning and would not have put such mischief beyond them.

 

After 16 weeks contemplation they said no, you need to redeem (plus the early repayment fee) if you want to build. So we made the allowable 10% overpayment to minimise the pain. Then then a week later they said, oh, maybe we can let you do it under strict conditions (i.e sole contractor etc). Then they said no, again.

 

At that point we just asked for the redemption fee to be waived in lieu of the delay and changes of mind and they said ok, even though it was against policy etc etc.

 

Remortaged with Ecology and was plain sailing from there on in.

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@Ferdinand no, I'd be able to bootstrap finance it myself faster out of work cashflow. The problem with that route is twofold though: 1) slow and 2) will leave us a little light in rainy day money.

 

@Dave Jones sure is tempting to get rid, but if I did the next guy in is going to light it up....on the back of my hard graft. Better to fight through it.

 

@pocster and @Bitpipe yes we have a decent one but I am conscious the game moves fast and also even the best brokers have an element of autopilot to them.

 

@Bitpipe that is an absolute tale of woe and no mistake. Good for you getting through it.

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14 minutes ago, harry_angel said:

@Ferdinand no, I'd be able to bootstrap finance it myself faster out of work cashflow. The problem with that route is twofold though: 1) slow and 2) will leave us a little light in rainy day money.

 

@Dave Jones sure is tempting to get rid, but if I did the next guy in is going to light it up....on the back of my hard graft. Better to fight through it.

 

@pocster and @Bitpipe yes we have a decent one but I am conscious the game moves fast and also even the best brokers have an element of autopilot to them.

 

@Bitpipe that is an absolute tale of woe and no mistake. Good for you getting through it.

 

It was more frustrating than anything and we were kicking ourselves for being a bit naive but it worked out in the end. I can PM you details of a very good broker who we have used on every re-mortgage since the build if you like? 

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Any one with experience of taking the risk of self building while on a standard mortgage with usual high street lender (disclaimer: I am not in way encouraging this risk taking ?).

 

It would be good to know hopefully not too stressful stories.

Edited by Zak S
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