Self build mortgage brokers

[andyscotland]

1 minute ago, scottishjohn said:

a bit of commons sense +couple in 30,s ,no kids --the odds are pretty high they going to get some soon and if your close to the edge of the lending criteria ,then i have no doubt that will be looked at  in any final decision 

 

Have checked and I'm fairly sure that is indeed unlawful. This page mentions specifically mortgages when pregnant - but if not yet pregnant it'd still fall under gender/age discrimination. It's illegal not to provide services to a woman just because she's theoretically the right age and gender to have kids.

 

Now of course people do unlawful things all the time, so maybe some lenders do consider it on the quiet. Maybe even just if there's a judgement call, it might swing the mind of an underwriter one way or the other. And yes if that happens you'll probably never know that was why.

 

My point is just that you advised "unless you can prove your wife is not going to have kids". If the mortgage company accept that proof they will be admitting to illegal practice.

 

Therefore, either they do it across the board and there's no evidence you can provide as an individual to change their mind, or they don't. They will not want a trace audit to turn up a doctor's note showing infertility in one of the files with a positive decision...

 

[andyscotland]

7 minutes ago, Amateur bob said:

thats a problem, what about if i were to sell my house and buy a bigger one would they want 3 yrs company accounts for that too?

 

Yep. The mortgage we had trouble with was just to move an existing mortgage to a bigger more expensive house without any extra borrowing (added some savings, inheritance etc). So no change to the payments we'd been making successfully for years, and a lower loan to value so lower risk for them. Still had to jump through hoops and nearly couldn't get it.

 

Definitely wouldn't have been eligible with a new lender and if we'd not been able to speak to a sensible underwriter at the lender who was able to see the big picture we would have had to stay in the old flat till I had enough accounts.

[newhome]

12 minutes ago, Amateur bob said:

thats a problem, what about if i were to sell my house and buy a bigger one would they want 3 yrs company accounts for that too?

 

Yes but it would be better to stay in your existing house, save like mad (and evidence of regular savings may help when you come to get the mortgage as it demonstrates an ability to live within your means), and hopefully increase your earnings to a level at which 100k becomes an easy amount to obtain. 

 

Where is the 100k savings? Equity in your existing house or in a savings account? 

[Amateur bob]

2 hours ago, newhome said:

 

Yes but it would be better to stay in your existing house, save like mad (and evidence of regular savings may help when you come to get the mortgage as it demonstrates an ability to live within your means), and hopefully increase your earnings to a level at which 100k becomes an easy amount to obtain. 

 

Where is the 100k savings? Equity in your existing house or in a savings account? 

20k in savings account the rest in existing house

[Amateur bob]

say i pushed on and got planning but couldnt get mortgage, how many years until my planning expires and i have to reapply?

[Jeremy Harris]

5 minutes ago, Amateur bob said:

say i pushed on and got planning but couldnt get mortgage, how many years until my planning expires and i have to reapply?

 

 

Three years normally, but you can lock the planning in by doing enough on site to constitute the "start of development" and then you have as long as you like.  What constitutes the start of development depends a bit on the local authority, but usually it would be having had all the pre-commencement planning conditions discharged and making a start with stuff like getting services in or starting the foundations.  Often it doesn't take a lot of work to tick the boxes needed to lock the planning consent in.

[Declan52]

1 minute ago, Amateur bob said:

say i pushed on and got planning but couldnt get mortgage, how many years until my planning expires and i have to reapply?

It doesn't really matter how long it lasts all you need to do is start the build. That could be just digging a part of the founds and pouring the concrete, you don't have to dig the complete foundation . You could ask your local planning person what they class as the start of the process. Once it's started then you can take as long as you like.

If you don't want to start then you have 3 years after which you need to reapply.

[ProDave]

In my case the first condition of the planning permission was we must form the entrance from the highway to the plot before building commenced.  I confirmed with he council once we had done that, that it constituted "starting" the development.  So in our case, that alone locked in the planning permission.

[Ferdinand]

28 minutes ago, Declan52 said:

It doesn't really matter how long it lasts all you need to do is start the build. That could be just digging a part of the founds and pouring the concrete, you don't have to dig the complete foundation . You could ask your local planning person what they class as the start of the process. Once it's started then you can take as long as you like.

If you don't want to start then you have 3 years after which you need to reapply.

 

Subject to the fun of "pre-commencement conditions".

[newhome]

20 minutes ago, Ferdinand said:

Subject to the fun of "pre-commencement conditions".

 

And the fact that once you’ve started a warranty will cost more. We had to pay extra for the warranty as the foundations were here already. 

[eandg]

5 hours ago, Conor said:

Good to rear the positive reviews on Ecology. They are pretty much the only company that will deal with us, very positive initial feedback from them so hopefully all goes well.

Have you tried Hanley Economic? I've arranged a telephone interview with then (and Ecology) for later in the week and they seem fairly keen and flexible - very few restrictions on build types, reasonable fees. 

[eandg]

1 hour ago, eandg said:

Have you tried Hanley Economic? I've arranged a telephone interview with then (and Ecology) for later in the week and they seem fairly keen and flexible - very few restrictions on build types, reasonable fees. 

Should also say they go interest free for the period of the build too if you want (and seemingly on the same basis - ltv, rate, fees etc. - as their repayment product). Advisor I spoke with said they've got into self build in a big way in the past 18 months and see that as their niche in the market. Guideline lending is 3.75x joint income or 4.25 x main income and 1.25x second. 

[Amateur bob]

12 hours ago, eandg said:

Should also say they go interest free for the period of the build too if you want (and seemingly on the same basis - ltv, rate, fees etc. - as their repayment product). Advisor I spoke with said they've got into self build in a big way in the past 18 months and see that as their niche in the market. Guideline lending is 3.75x joint income or 4.25 x main income and 1.25x second. 

do these type of companies lend you a bit more if you have a big deposit?

[Alex C]

8 minutes ago, Amateur bob said:

do these type of companies lend you a bit more if you have a big deposit?

I think this one has been going round and round under several different forum headings. There comes a point when proffessional advice from a broker is required. 100k is not a big deposit for a new build. 200k is very low for a budget for a new build (especially when you were wanting to build a 270m2 house). Your income you have mentioned is on the low side for needing to borrow money to build a house.

[Amateur bob]

1 minute ago, Alex C said:

I think this one has been going round and round under several different forum headings. There comes a point when proffessional advice from a broker is required. 100k is not a big deposit for a new build. 200k is very low for a budget for a new build (especially when you were wanting to build a 270m2 house). Your income you have mentioned is on the low side for needing to borrow money to build a house.

im going to speak to one when i get a better idea of whats realistic, im going to aim more for 200m2 now and possibly add an extension in future, is this doable?

[Alex C]

Just now, Amateur bob said:

im going to speak to one when i get a better idea of whats realistic, im going to aim more for 200m2 now and possibly add an extension in future, is this doable?

I would say not as I did  earlier in this thread. Some people can build at 1000m2 but I suspect if you need to ask the question then you won't be one of them. 1500m2 minimum is where you should be budgeting and that is after all your fees and other costs, such as your housing for the duration of the build.

[eandg]

If I was in your position Bob then I'd work back the way from what you can borrow. The bank won't lend you anything that you can't viably finish within budget - they want security on a house not a building site. 

Edited June 4, 2019 by eandg
Spelling error

[Amateur bob]

3 minutes ago, eandg said:

If I was in your position Bob then I'd work back the way from what you can borrow. The bank won't lend you anything that you can't viablt finish within budget - they want security on a house not a building site. 

what if i gave them security on a bit of farmland plus the plot and had 100k deposit for the built it could be 0% loan to value? would i still need a big salary to get the additional 100k for build?

[Mr Punter]

2 hours ago, Amateur bob said:

what if i gave them security on a bit of farmland plus the plot and had 100k deposit for the built it could be 0% loan to value? would i still need a big salary to get the additional 100k for build?

You can borrow 4 x wife's earnings, so £80k, as long as you have no other mortgages.

[Amateur bob]

1 hour ago, Mr Punter said:

You can borrow 4 x wife's earnings, so £80k, as long as you have no other mortgages.

thanks thats helpful with a basic double storey rectangle, brick and block work and concrete tiles, concrete base on a level site can you see me getting anywhere near £200k build cost in a 200m2  site? thanks

[Alex C]

34 minutes ago, Amateur bob said:

thanks thats helpful with a basic double storey rectangle, brick and block work and concrete tiles, concrete base on a level site can you see me getting anywhere near £200k build cost in a 200m2  site? thanks

I am seriously impressed with your ability to ignore all advice regarding costs and repeatedly ask the same question.

[Amateur bob]

2 hours ago, Alex C said:

I am seriously impressed with your ability to ignore all advice regarding costs and repeatedly ask the same question.

relax im just getting ideas at the moment

[Hobbiniho]

14 hours ago, Amateur bob said:

thanks thats helpful with a basic double storey rectangle, brick and block work and concrete tiles, concrete base on a level site can you see me getting anywhere near £200k build cost in a 200m2  site? thanks

 

i cant see it unless you are going to be physically doing the work yourself and even then you would struggle, one of my best friends who along with myself are both time served joiners build his own house it was a 100m2 3 bed timber frame, timber clad bungalow, the site was free as he got it from his parents, he physically done all of the work himself (excluding heating and electrics) including making the kit with calling in favours from family and friends paying in tea and biscuits and time paid back in favour (he still owes me about 5 days labour), and he just managed to do it for £1000/m2 

 

you need to listen to people on this forum, with a 200k budget you will be able to build a high spec 100m2 bungalow or a a lower spec 135m2 bungalow

[davidc]

So, as far as i can see, for my prospective self-building lending requirements of £100k, Buildstore are adding roughly £1k of their own fees to those of the recommended product (Ecology). Suspect i may get some sarcastic responses but what I am actually getting for that £1k (over and above applying and dealing with the Ecology directly) ? 

[Jeremy Harris]

41 minutes ago, davidc said:

So, as far as i can see, for my prospective self-building lending requirements of £100k, Buildstore are adding roughly £1k of their own fees to those of the recommended product (Ecology). Suspect i may get some sarcastic responses but what I am actually getting for that £1k (over and above applying and dealing with the Ecology directly) ? 

 

About the square root of sod all...

 

I dealt directly with the Ecology, and they were very good to deal with.  Whether or not they will now deal directly with you, after you've gone to Buildstore to make initial contact with them, I'm not sure.  Fingers crossed for you that they will be OK about it.