SelfBuild Morgage Question.
> Ie - How is the LTV calculated ?
Obviously for a standard property the LTV at the time of purchase/mortgage approval is (loan amount / market value) expressed as a percentage. However where the property has yet to be renovated or built then I don't know how lenders generally approach this. Whatever about the details don't be afraid to haggle for the best deal possible one way or another.
> will I have to pay house insurance/ will the bank require me to pay house insurance from the start - even though there's no house there ?
As far as I know you will need some sort of insurance in place to cover the development/renovation of the property including public liability etc. This is completely different to the sort of buildings/contents insurance that you take out once the property is completed and occupied. Your lender will presumably insist on the former while the development is ongoing.
> Same question when it comes to the Value of the life Assurance ?
As far as I know the lender will require mortgage protection life assurance for the full loan amount from the time that the initial stage payment is drawn down.
> Anyone done this before ? How did you work it?
Are these topics of any use?
> Q3. I would really appreciate any all round advice about any other options than EBS ?
You mentioned "other issues" with the mortgage application that may limit your options but in general it makes sense to shop around on price (interest rate charged) and, if you can afford fluctuating repayments, go for the best value tracker rate available to you:
www.askaboutmoney.com/clu...#MORTGAGES