We are hoping to build in the near future - Can you incorporate 30-40 K into the mortgage or do the banks look for receipts for every cost on the build. i.e. if the house was going to cost 280K , we will look for a 320K mortgage and with the extra money pay for the wedding and other costs (8K loan at a higher interest rate to pay off). Can this be done?
start, just think about what you're looking to do ... you want to pay off your wedding over the next 30 odd years? Are you sure you really want to do that, ignoring for a minute the question of what the banks will lend? From the sums above you're talking at a wedding cost of between 22K-32K - if you don't have any savings I'd say you're mad to even consider this cost!
I think for a house build (as opposed to a straight buy), they look for receipts every step of the way. Even with a house buy, they look for evidence of the actual price agreed/paid and not just the valuation - I'm pretty sure.
Sprite
The bank doesn't look for a single receipt. It is the job of the engineer to confirm that each stage of the build is completed to the proper standard and that an amount of the mortgage can be drawn down on the basis of that work. Simple example. It takes one guy 30k to get the house to floor level, another guy may well take 70k - genuinley! Cheap one was on great ground and only needed 3 courses of blocks and little drainage. The second guy needed 7 courses and re-inforced walls and expensive drainage!!! Once the engineer signs off on it - that's all the bank needs! If you wanted to pay for a wedding you could "hide" a few thousand in each stage of the build. Whose to say it cost you 55k to build the roof or 58.5k???? Both figures are "normal"....
Saying all of the above - putting a wedding on your mortgage is not a good idea... CJH is spot on in outlining that it will end up costing double in the long run!
We are hoping to build in the near future - Can you incorporate 30-40 K into the mortgage or do the banks look for receipts for every cost on the build. i.e. if the house was going to cost 280K , we will look for a 320K mortgage and with the extra money pay for the wedding and other costs (8K loan at a higher interest rate to pay off). Can this be done?
I thought I remembered from buddies of mine that built that they had to provide receipts to the bank for works done but don't have first hand experience so can't comment
Sprite
you want to pay off your wedding over the next 30 odd years? Are you sure you really want to do that,
35,000 borrowed over 30 years at 5% incurs approx 32,500 interest, meaning the wedding will cost 67,500.
Are you prepared to spend this much on one day?
I would not be a fan of expensive weddings. But if someone wants to pay off a once in a lifetime cost over many years, that is fine.
Grand so - thanks. I thought I remembered from buddies of mine that built that they had to provide receipts to the bank for works done
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