paulc313

May not need self build mortgage

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Hi,

 

The situation for us may change where we have 85k for a deposit and can remortgage our current home to get another 85k so 170k in total. Our build cost is likely to be 210k so 40k short. I've phoned mortgage brokers who advise that it is 50k loan value minimum for a self build mortgage and even if I get a 50k one the fees are between 5 - 10k so it won't be worth my while and I should think about two personal loans for my wife and I. Does anyone know of any other type of financial product that may be viable in this circumstances except for a personal loan?

 

Thanks

 

Paul

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9 minutes ago, paulc313 said:

Hi,

 

The situation for us may change where we have 85k for a deposit and can remortgage our current home to get another 85k so 170k in total. Our build cost is likely to be 210k so 40k short. I've phoned mortgage brokers who advise that it is 50k loan value minimum for a self build mortgage and even if I get a 50k one the fees are between 5 - 10k so it won't be worth my while and I should think about two personal loans for my wife and I. Does anyone know of any other type of financial product that may be viable in this circumstances except for a personal loan?

 

Thanks

 

Paul

 

15k 24mth interest free credit card?

 

(Know your limits)

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Posted (edited)

Family/Friends? But get it in writing and ensure repayment terms are clear - families have fallen out over money before.

Edited by AliMcLeod

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2 hours ago, paulc313 said:

Hi,

 

The situation for us may change where we have 85k for a deposit and can remortgage our current home to get another 85k so 170k in total. Our build cost is likely to be 210k so 40k short. I've phoned mortgage brokers who advise that it is 50k loan value minimum for a self build mortgage and even if I get a 50k one the fees are between 5 - 10k so it won't be worth my while and I should think about two personal loans for my wife and I. Does anyone know of any other type of financial product that may be viable in this circumstances except for a personal loan?

 

Thanks

 

Paul

How confident are you on those build costs?
It sounds like we're in a different position but we are planning to take a bit more on our build mortgage than we need so we can keep more of our own cash. I don't want to be in the position of being maxed out and hitting an unexpected overrun or there being a staged payment delay that I can't cover. 

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Posted (edited)

It's not hard to go over budget so you need to think what you would do if the money runs out. It's hard to get a self build mortgage on a half built house. I know it's more expensive but I favour spending borrowed money first and keeping cash in reserve if possible. You can always make a large(r) mortgage repayment at the end if you have cash left. 

 

I would be concerned that over the next few years the UK housing market and banks willingness to lend may change making it harder to borrow more in say a year's time than it is now. The BoE has already warned that interest rates may rise more frequently than people are expecting. Think they expect the first rise to come this summer.

Edited by Temp

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You will always need more than you think....go for the mortgage at least you then have the certainty of having enough to finish the build and you can pay off if you have funds left.

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