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Mortgage needed after halfway mark

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So as the property market continues to flop in our neck of the woods, we have decided not to sell our current property and instead rent it out.

....which then raises the issue on how to finance the rest of our self build...

 realistically we are about 70% complete but as we cannot release the equity from our current home are now looking at self build mortgages...

Our main issue appears to be warranty.

We have literally self built (joiner) , so apart from building control have no certifications. 

"Only" looking for about £50k against what will hopefully be a £400k/450k property, but it's clearly not finished. 

How finished does a house need to be for a normal mortgage?! 



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Sounds a similar situation to mine, though I steadfastly refuse to borrow so we are scraping along slowly.


How finished is the house? If you can get it basically habitable (basically safe, working heating, a working kitchen and working bathroom) you can get a certificate of temporary habitation from building control.   That will be taken as "complete" for the sake of getting normal buildings insurance, so would a lender also take that as "complete" for the sake of a small mortgage?

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Thanks for the replies!

@ProDave if I got a temporary habitation would that not mean I'd need to pay council tax? 

House is 70% complete but have ordered and paid all kitchens and bathrooms they just aren't fitted yet as walls not taped. We intend putting a static on site for the remaining 6/9month (both work full time so only building weekends/evenings) and (at present) refuse to move in until completely finished or it just won't get finished if you know what I mean! 

@recoveringacademic Yes we remortgaged and offset our current house to get to this stage of the new Build but need to leave current house LTV at 70% to allow the permission to rent so no more equity available there unfortunately 


a "standard" mortgage might be an option then if we can swing it, will speak to BC

Edited by Triple07
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In our last build, we were paying band A CT for a static 'van on site. We moved in when we got the temporary habitation. It was then several months before we were anywhere near actually finished and the CT valuer did not deem it "finished" until some time late in the process.


So no, they are separate departments and a temporary habitation should not on it's own trigger a council tax bill.


For us, the temporary habitation enabled us to do the VAT claim before it was 100% complete, and the VAT refund paid for most of the garage build. Yes we lost out on the VAT for the materials for the garage but it helped our cash flow.

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13 hours ago, ProDave said:

That will be taken as "complete" for the sake of getting normal buildings insurance

Read the small print carefully else your insurance may be invalid. If you are doing substantial building works the policy might not apply.


And if this is not in the policy terms, the insurer could easily decline a claim unless you spell out the situation prior. On the basis that you did not declare a material fact that impacts their risk assessment.

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  • 4 weeks later...

Few points to consider. For a mortgage, you need at the very least the following:

- bathroom

- kitchen

- building control cert if it’s new

- has to be insured or can be insured

- functional drains


You may find the insurance part will be the sticky point unless you lie about the state of the property. 

Council tax should be the least of your worries. 


If it were me, I would consider the following:

1. Small Loan to get to mortgage state (kitchen, bathrooms, drains and BC cert)

2. Loan secured against the land by specialists lenders (expensive rates) with no penalty fee so you can refi into a normal mortgage

3. Self build loan as I assume your LTV will be very low 

4. Bridge loan if you are 100% sure you will be in a state to refi in 4-6months


Above in order of what I assume will be cheapest to more expensive. All comes down to your rental property, if it’s has lender consent-to-let and a sitting tenant with cash covering mortgage, then you have options. Without that, your affordability will be judged on two properties. 



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