sunflower Posted November 20, 2023 Share Posted November 20, 2023 We're currently looking at various different routes to financing our self build. One thing is for certain is, we need to save up for some more deposit before we apply for a mortgage. In the mean time, we'd quite like to start some of the ground works & foundations (we own the land and already live on site in a caravan, so this is doable) But, my concern is that a lender might not lending on a project that's already started? Does anyone have experience of this? Thanks so much for your help Link to comment Share on other sites More sharing options...
Bozza Posted November 20, 2023 Share Posted November 20, 2023 (edited) Have a conversation with Ecology BS. As you own the land already, especially with PP, it has a value so you may find you don’t need a cash deposit. Thats what we did. as such the cash they’re releasing to you is always an amount that’s less than the value of your project at that stage. id imaging a plot in Sussex with PP has a significant value to it. That would be your deposit. search Ecology on this forum you’ll find many have had excellent experiences with them, including me. we’d already bought the plot and demolished the existing house, then applied for the SB mortgage. We used cash reserves to go a few stages before drawing down money as and when required. Edited November 20, 2023 by Bozza 3 Link to comment Share on other sites More sharing options...
sunflower Posted November 20, 2023 Author Share Posted November 20, 2023 17 minutes ago, Bozza said: Have a conversation with Ecology BS. As you own the land already, especially with PP, it has a value so you may find you don’t need a cash deposit. Thats what we did. Thank you, that's very encouraging and worth investigating! We have an ag-tie, but it's very vague (not specifically connected to a particular industry or business) so I hope they might consider us. I will contact them! Link to comment Share on other sites More sharing options...
Bozza Posted November 20, 2023 Share Posted November 20, 2023 3 minutes ago, sunflower said: Thank you, that's very encouraging and worth investigating! We have an ag-tie, but it's very vague (not specifically connected to a particular industry or business) so I hope they might consider us. I will contact them! ag tie properties are acceptable to Ecology. https://www.ecology.co.uk/wp-content/uploads/2023/06/Lending-Criteria-Guidelines-Feb-2023.pdf 2 Link to comment Share on other sites More sharing options...
Conor Posted November 20, 2023 Share Posted November 20, 2023 +1 for ecology. 2 Link to comment Share on other sites More sharing options...
sunflower Posted November 20, 2023 Author Share Posted November 20, 2023 Thanks guys! Link to comment Share on other sites More sharing options...
PNAmble Posted November 20, 2023 Share Posted November 20, 2023 I’d recommend also speaking to mayflower, they provide lots of advice as well looking at different options and lenders. My only connection was they helped us get a self build mortgage and provided a lot of advice 2 Link to comment Share on other sites More sharing options...
Blooda Posted November 21, 2023 Share Posted November 21, 2023 We had the land, and had started the build and had a large mortgage on our previous house, and used Loughborough Building Society for their self build mortgage. Having the land is a distinct advantage, you won't need a deposit. You will need an estimate to complete [we just did a spread sheet, based on estimators online with firmer estimates. We suggested our stage payments, and they did not mind that the first stage payment was the completion [passed off] foundations which we had already done. We dealt with Loughborough direct without going through an agent, Their rates at the moment look about 0.7% higher than ecology. 2 Link to comment Share on other sites More sharing options...
mickeych Posted January 6 Share Posted January 6 On 20/11/2023 at 12:22, PNAmble said: I’d recommend also speaking to mayflower, they provide lots of advice as well looking at different options and lenders. My only connection was they helped us get a self build mortgage and provided a lot of advice I'd second that. really know what they are doing and are very patient with Newbie's like us! 2 Link to comment Share on other sites More sharing options...
SarahG Posted January 11 Share Posted January 11 We are currently going through an application with Saffron BS. They are keen to get in to the self build market and actually reduced their self build interest rate at one point last year. We are applying for a 5.99% mortgage which is quite competitive. I was keen to go with Ecology given the great reviews on here but our EPC rating was not good enough. We are two months in to the app so I am hoping for an offer very soon as it feels like it's taking forever. We went through a broker(also a friend) it's been a learning curve for both. So don't have direct experience yet of dealing with Saffron. I hope it all turns out ok.. We also own land and the amount we want to borrow is only half of the value of land so really no risk for BS at all. No idea why's is taking them so long. We also sent them estimators online quote and hoping this is acceptable. Good luck! 1 Link to comment Share on other sites More sharing options...
flanagaj Posted March 4 Share Posted March 4 On 21/11/2023 at 10:29, Blooda said: You will need an estimate to complete [we just did a spread sheet, based on estimators online with firmer estimates. This is very useful information. We are in the process of purchasing a plot with cash and will need lending for the build. Link to comment Share on other sites More sharing options...
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