April 16, 20233 yr Hi there just wondering if I could pick peoples’ brains on a financial issue as I’m sure lots of people have been in a similar situation. we are hoping to build it our back garden. We live in a house worth 825kish (with building plot removed) and have a 373k mortgage - will be more like 350k when we hopefully build). we need about 400k for the build but need to release this somehow. So far I have thought of the following options, but just wondered what people’s’ thoughts are: 1. bridging loan - super expensive and not sure how much they’d lend us but hoping we could secure again equity in our current house. Would be slightly petrified we would struggle to sell current house to pay it off!! 2. self build mortgage - would have to be interest only as otherwise I don’t think we’d pass the affordability checks. Even at current rates, interest only is about 2k a month and there would be early repayment charges when we do sell. 3. Sell current house and rent - we have 2 young kids so this isnt ideal and also I’d worry about potential buyers not wanting to buy a house with an impending building site at the back!! any thoughts on this greatly appreciated. I’ve dropped ecology an email so hoping they’ll get back to me next week, but nothing like first hand accounts and advise. thanks
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