Hi
gone to different lenders & brokers and find cannot compare like with like!! Boggled and need to act soon. Situation is as follows:
Current house value: 250k
Bought site (1 acre rural) sub to pp: 70K
Esimated build 2500sq ft (dir lab) cost 250K (include finish etc).
Total Loan amt needed: 300K.To start Jan 07, hopefully!
Outstanding morgage: 26K
Joint incomes allow for 280, 290K stretched borrowings
Savings accounted for: to cover stamp duty, cash on top of 70K to site seller
Want to complete build before selling up current house
From reading all articles and posts: this is what im thinking -
1. go for investment mortgage to get 300K, my new build considered residential, current house to let (even though I'll prob sell)
2. Interest only mortgage for first 12 mths over 30yrs. Am used to only paying 400 pm on repayments now.
3. Follow ECB rate or fxd for 1 yr?
4. LTV: should i do 300/400=75% to be safe or should I aim for lower LTV by 300/400 plus value of current house to be <60%
Is it that I ought to find cheapest way of funding like disc variable rate, and disregard what rate would be after that as house should be sold to go against loan within 18mths anywhere, thereby reducing mortgage. I cannot make up my mind and am confused with all the various mortgage lenders advice.
Lizzy
gone to different lenders & brokers and find cannot compare like with like!! Boggled and need to act soon. Situation is as follows:
Current house value: 250k
Bought site (1 acre rural) sub to pp: 70K
Esimated build 2500sq ft (dir lab) cost 250K (include finish etc).
Total Loan amt needed: 300K.To start Jan 07, hopefully!
Outstanding morgage: 26K
Joint incomes allow for 280, 290K stretched borrowings
Savings accounted for: to cover stamp duty, cash on top of 70K to site seller
Want to complete build before selling up current house
From reading all articles and posts: this is what im thinking -
1. go for investment mortgage to get 300K, my new build considered residential, current house to let (even though I'll prob sell)
2. Interest only mortgage for first 12 mths over 30yrs. Am used to only paying 400 pm on repayments now.
3. Follow ECB rate or fxd for 1 yr?
4. LTV: should i do 300/400=75% to be safe or should I aim for lower LTV by 300/400 plus value of current house to be <60%
Is it that I ought to find cheapest way of funding like disc variable rate, and disregard what rate would be after that as house should be sold to go against loan within 18mths anywhere, thereby reducing mortgage. I cannot make up my mind and am confused with all the various mortgage lenders advice.
Lizzy