Changing phasing on mortgage release to help cashflow

[oldcoop]

Does anyone have a self-build mortgage via BuildLoan/Buildstore? I'm wondering what our chances are of getting them to release funds early (so not borrowing more money but just changing the timing).

 

Our mortgage is with Chorley Building Society via BuildLoan. They release funds in several stages, and the issue is that they withhold the final 10% until completion (ie building regs sign-off).

 

We've had our early funds released and the next stage is the pemultimate one: "water tight". We should be there by the end of this week (wohoo!)... However, there have been some unexpected costs (we found a well under the new foundations...boo). This takes us over our contingency. We can afford this in the long term (ie once the last 10% of mortgage funds have been released), but the phasing means that in the short term we'll go £15k into the red for a few weeks, which would mean having to beg/borrow from relatives to tide us over. Ideally I'd like to drawn down more funds to avoid that.

 

Does anyone know my chances of getting the to release more in the next (penultimate) stage?

 

I am worried that if they always insist on withholding 10% then it isn't worth mentioning it to BuildLoan (who do the admin on the stage releases) because it might just freak them out. If, on the other hand, there is a chance they may be helpful, then I want to bring it up. Dilemmas...

[Hecateh]

Have you got a credit card you could use.  I've a card that I rarely use, (luckily their 'promotions' don't tempt me) on which I have allowed them to keep increasing my available balance.  I can now get a goodly sum at a moments notice should I need it.  Used it to loan my son 12k a couple of years ago that he could easily afford but new rules wouldn't let him have.  Now it's there as a (second) contingency on my build.  I will only use it when I know it's only about cash flow not affordability. 

[oldcoop]

5 minutes ago, Hecateh said:

Have you got a credit card you could use.  I've a card that I rarely use, (luckily their 'promotions' don't tempt me) on which I have allowed them to keep increasing my available balance.  I can now get a goodly sum at a moments notice should I need it.  Used it to loan my son 12k a couple of years ago that he could easily afford but new rules wouldn't let him have.  Now it's there as a (second) contingency on my build.  I will only use it when I know it's only about cash flow not affordability. 

Yes - exactly what we have been thinking. Have got a card that is 0% for 30 months, which will be great to allow me to split the cost of the kitchen over 30 months. But sadly the builder won't take a card, which is annoying!

[Hecateh]

You can usually get the cash for a one off fee which is at a far lower rate than mortgage (well for me anyway as I'm using a bridging loan which runs at 13% (gulp) but 3 % is the normal charge for 30 months which is still cheaper than most mortgages.  Mine has a variation of 4.9 for the life of the loan which may work out cheaper if I can pay it off within about 6 months which should happen, or, worst case scenario, I don't get hit with full charges after x months.  Why not ask your card supplier?  

[Hecateh]

Alternatively you could offer to pay the builder an extra 3 or 4 % to take the card - again - always worth asking

[asklair]

Alternatively offer to pay your builder outstanding invoices from his suppliers with your credit card.

[oldcoop]

We took the plung and mentioned to buildloan - they were not phased and agreed to add an extra stage payment to give us half of the withheld 10% - really great result that keeps us in the Black!

 

Their admin is pretty ropey so we’ll have to keep on top of them but the gamble paid off!!

 

Thanks for all your comments. The 0% credit card is continuing to come in useful for kitchen and several other bits.