Self build Mortgage deposit less than 8% if you have your own site to build on

  • Thread starter tinamars2000
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tinamars2000

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Hello we are hoping to build in the next year, my bf has a field given to him by his father to build on. Is it true because we have this land that banks won't ask you for so much of a deposit eg(8%) they usually ask for. We were hoping to get a mortgage for 150,000 how much deposit would we need do you think any help would be great i'm completely clueless.
 
If you have the site, you can borrow up to 100% of the build costs - no need for deposit but you may have to show savings to cover cost overruns.
 
your bf is lucky to get a plot of land - they can be hard to come by!
I would recommend speaking to Buildstore - they are the experts in this type of thing. they can offer mortgages for these types of self-build projects. I belive they are offering up to 85% borrowing for land purchase and build costs, but they did do 95% before the credit crunch. Not sure what the % would be for just build costs though. There arent many lenders who will lend for a self build, but BUildstore work with the ones that do. They can give you money upfront for your build phases, so you get your cash before you start each phase, handy for buying materials and paying your builders! not sure where you live but they have a massive exhibition centre just outside swindon too - i visited a while ago and its fantastic, especially if you are a bit of a novice!
 
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