Negative Equity and Self Build

MissMoneyPenny

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Hope I'm posting in the right thread.
I currently have a negative Equity mortgage with permanent tsb and am six months out of a 4 year restructure arrangement which involved warehousing a portion of my mortgage.
My house is currently valued at 250k while I owe 280k. 35k negative Equity. Mortgage repayments are €1340 per month. The house we live in does not meet our current need as we are a growing family, third baby on the way.
We would really love to build and have become aware of any opportunity that we feel would suit us. There is a cottage on 3/4 acre not far from my husband's house with guaranteed planning permission to convert into a 4 bed. The site is going for 85k. We have savings of 60k and with help from our parents we could purchase. We are not looking for a large mortgage, just enough to build a modest 4 bed family home.
What I need to know is that if in 12 months time if we were to go back to permanent tsb with this property and request a self build mortgage , Would this land work as a deposit/savings?
It seems to be a fantastic opportunity to fulfill our dreams but we're afraid of putting our savings in it to be told that we can't get any sort of mortgage help to build. Could anyone share their experience or knowledge/advice?
 
Specifically in relation to using a site as deposit, yes. Any bank will consider this as deposit.

But I'm confused about you having 60k in savings after having part of your mortgage warehoused. Your whole situation would need to be looked at, to see if you would meet their credit criteria.
 
Thanks Red Onion. The mortgage is in my own name and I entered the restructure arrangement when my husband and I were just going out. He moved in with me. He had his own two bed house which he has recently sold. He wasn't in negative Equity and actually made 45k from the sale. His mortgage was with a different bank. This mortgage we would be applying for would be a joint mortgage in both our names.
 
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