Self Build Mortgage Options

[GrantMcscott]

Hi I am currently looking to finance a build in Scotland and was looking for advice on funding options.  I am looking to fund land at 100 K build costs of 270K and have a 70k deposit

I have looked at the following

Scottish Building Society but they only give LTV of 60%

Mary Riley Custom Build Funding Limited (I have spoken to her and she sounds very knowledgeable) but charges 1% fee then I will have mortgage fees after that.

The build store but heard so many bad things about them

Ecology Building Society

I would like to get an offer in principal so I could go ahead and start the legal process on the land.

 

Any advice would be gratefully received.

Grant

[MikeSharp01]

Ecology have a reasonable track record but are a little expensive. However they do know what they are doing in this market space. There are other lenders, mostly building societies, but digging one out would perhaps need a broker. See if the broker can find you a mortgage at a better rate than ecology will offer including the 1% fee, if they can you are quids in. If not the go with Ecology. 

 

PS Virgin money, Halifax, Nationwide and Hanley all do them. 

Edited June 17, 2018 by MikeSharp01
Added list of BS

[Caroline]

We have gone direct to The Melton BS.

[Thedreamer]

https://beta.gov.scot/news/help-to-build-own-home/

 

It was originally only available in the Highlands but is now being extended throughout Scotland and I believe it acts as a revolving credit fund, where you repaid it on completion, you need a mortgage promise for a standard residential mortgage before applying.

 

I'm building in Skye and have a mortgage (or the security is currently being assigned) with the Scottish Building Society. Out of all the options the SBS was the best for us, as it provided a smooth transition to a residential product.

 

We already owned the land and put the services/access a few years ago, so will probably need the first drawn down once wind and water tight.

 

Not many choices in Scotland unfortunately. Where are you building?

[ultramods]

9 hours ago, GrantMcscott said:

Hi I am currently looking to finance a build in Scotland and was looking for advice on funding options.  I am looking to fund land at 100 K build costs of 270K and have a 70k deposit

I have looked at the following

Scottish Building Society but they only give LTV of 60%

Mary Riley Custom Build Funding Limited (I have spoken to her and she sounds very knowledgeable) but charges 1% fee then I will have mortgage fees after that.

The build store but heard so many bad things about them

Ecology Building Society

I would like to get an offer in principal so I could go ahead and start the legal process on the land.

 

Any advice would be gratefully received.

Grant

 

Are you sure Scottish Building Society only lend LTV of 60%? I haven't spoken to them however had done some research and saw this https://www.scottishbs.co.uk/images/stories/Mortgages/SelfBuildMortgageLeaflet.0815.pdf

 

I have just arranged an accelerator mortgage with Furness Building Society in Scotland, might be worth a look. However you would have to go through a broker. If you don't want to deal with Buildstore I think you can use a local broker who would then possibly have to go through Buildstore if they can't access the Building Society directly. Buildstore need to provide the local broker services within certain time scales, so it might be a more efficient way of doing it.

[GrantMcscott]

Hi

Thanks for all the replies will look into the suggestions

 

thanks

[Shah]

I have recently called The Melton BS and Ipswich BS. Both do self build mortgages but the rates are above normal mortgages. For Halifax one will have to go through a broker to get a self build mortgage. Both Melton and Ipswich said they would lend based on the affordability criteria which it seemed is similar to what a normal high street bank would do. In your example the total cost is £370k. You have £70k deposit so if you can afford a mortgage of £300k then they will be happy to lend otherwise if there is a difference between the Deposit + Mortgage and Total Build cost then you would need to bridge that gap somehow. I hope this helps. Shah.