Applying for mortgage.. after build started?

[sunflower]

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

[Bozza]

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 by Bozza

[sunflower]

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!

[Bozza]

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

[Conor]

+1 for ecology.

[sunflower]

Thanks guys!

 

[PNAmble]

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

[Blooda]

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.