Self Build on own site

S

sman

Registered User
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Hi,

Can anyone tell me what the general mortgage rules (Deposit, amounts etc.) are for a self build on a site which i would be given by family? I am earning 32000
 
The best course of action would be to pop into a bank or building society. They will walk you through the process. Bear in mind if yopu want to borrow money you will need collateral so if the site is worth 100.000 and you want to borrow 200,000 you will need more back up. Also you will only gret the money in stages.

good luck

noah
 
Thanks. As i will own the site and not have to pay for it - does that mean i can use this value as the deposit or do i still need to come up with 8% deposit(assuming 92% mortgage). For example - site worth 100k, house costing 200k but (prob worth over 350-400 when complete - think i saw on another post that this has an impact). The total cost were i to be buying the site would be 300k - does this mean i could borrow over 200k without needing a deposit? as this is only 66.67% of the total cost?

Or does it take into account the fact that i own the site and therefore the cost is 200k so only get mortgage of 184k (or 92%).
 
You can get a multiple of your yearly salary. For example as you earn 32K some banks will offer you 4 times yer salary and some will offer up to 6 times. You wont need a deposit for the build as the land itself (with PP) will suffice. You say the house will cost 200 K to build. This works out @ 6.25 times your salary so you might not be able to picka nd choose your mortgage, but you should be able to get some lenders to offer that amount! Talk to a good mortgage broker and see what they can come up with!! Best of luck! Im looking into this at the moment for myself!
 
I should have mentioned above that this is max LTV if you are purchasing a site. If site is gifted, max borrowing is 92% of total property value.
 
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