Super critical
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Sorry if this is posted in the wrong place but I'm just looking for some advice on the best approach for getting a mortgage on a selfbuild. We are recently married and would hope to get started building a house asap on a site which will be gifted (on my family farm).
I had a fairly good job up until recently but was made redundant and have been holding off for a few months to start a particular job which at this stage will not start until towards the end of the year so while I had an excellent savings record for the previous few years I am just scraping by on the Jobseekers benefit now and using a small amount of savings (most of my redundancy payment went towards paying for the wedding + honeymoon). Therefore it could be the middle of next year or even longer before I'd have a savings record suitable for an application.
My wife is also about start into a new job so have a number of months probation etc.
Overall between my previous savings and my wife's savings we should have in the region of 80 to 90k (this would not be using up all savings) add this cash gifts from our parents we should have in the region of 100 to maybe 110k along with the site.
Firstly is there any chance a bank would lend early next year when we are both in new jobs and neither have a saved much/anything in the previous 6 months (due to being out of work and getting married) but having a large amount of previous savings and a site.
The other option I am considering is to build as much as we can for cash. 110k would make a very good start (planning, engineer/architect, fees, ground works, foundations, structure to below roof level potentially etc). This would take some time and give us a chance to get the regular savings going again. My questions is how would a bank react about being approached for a mortgage for finishing a partially built house? We are looking to build a fairly big and well finished house so we could be looking for around 200k of a mortgage give or take. Would they consider the work already done in place of a deposit? We would need 20% as my wife is not an FTB and we may even have enough left over in savings to make this up but it would not be used towards it which I guess wouldn't matter once we had it.
Anyway long post but just really looking for some thoughts, the real reason at looking at option 2 is to expedite things if the situation was different we would just apply for the mortgage at the start.
I had a fairly good job up until recently but was made redundant and have been holding off for a few months to start a particular job which at this stage will not start until towards the end of the year so while I had an excellent savings record for the previous few years I am just scraping by on the Jobseekers benefit now and using a small amount of savings (most of my redundancy payment went towards paying for the wedding + honeymoon). Therefore it could be the middle of next year or even longer before I'd have a savings record suitable for an application.
My wife is also about start into a new job so have a number of months probation etc.
Overall between my previous savings and my wife's savings we should have in the region of 80 to 90k (this would not be using up all savings) add this cash gifts from our parents we should have in the region of 100 to maybe 110k along with the site.
Firstly is there any chance a bank would lend early next year when we are both in new jobs and neither have a saved much/anything in the previous 6 months (due to being out of work and getting married) but having a large amount of previous savings and a site.
The other option I am considering is to build as much as we can for cash. 110k would make a very good start (planning, engineer/architect, fees, ground works, foundations, structure to below roof level potentially etc). This would take some time and give us a chance to get the regular savings going again. My questions is how would a bank react about being approached for a mortgage for finishing a partially built house? We are looking to build a fairly big and well finished house so we could be looking for around 200k of a mortgage give or take. Would they consider the work already done in place of a deposit? We would need 20% as my wife is not an FTB and we may even have enough left over in savings to make this up but it would not be used towards it which I guess wouldn't matter once we had it.
Anyway long post but just really looking for some thoughts, the real reason at looking at option 2 is to expedite things if the situation was different we would just apply for the mortgage at the start.
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