Jump to content


ebuild is sad to announce its closure - it has become too time and resource intensive to develop, manage and maintain.

However, ebuild will remain on-line in archive mode (ie no posting facilties) for several weeks so that users can use it as an information resource.

Full Time Project Managing And Self Build Mortgage


  • Please log in to reply
9 replies to this topic

#1 Didi1980

Didi1980

    New Member

  • Members
  • Pip
  • 5 posts

Posted 16 March 2016 - 04:01 PM

Hi all,

I am thinking about how I can get my self build on the way. I dont have a property to sell and I am not rich. That means I need a self build mortgage. I have a healthy deposit for land and build so it should be fine as far as numbers are concerned.

My question now is if anyone has any experience on how lenders are with people who want to do much of the work themselves? I want to do lots myself and probably do so full time i.e. not working whilst the build goes on. Will banks agree to something like that or do they want incomes?

I appreciate any help

#2 jayroc2k

jayroc2k

    Regular Member

  • Members
  • PipPipPip
  • 297 posts

Posted 16 March 2016 - 04:19 PM

On the subject of not working while doing the build, are you sure the banks are OK to lend to someone not working or not planning to work? You still need to service any part of the loan (mortgage payments) you have drawn down during the build

#3 jamiehamy

jamiehamy

    Water Tank Conversion

  • Members
  • PipPipPip
  • 601 posts
  • LocationGourock/Largs

Posted 16 March 2016 - 04:24 PM

When we applied throug Buildstore we were not planning using a builder and were never asked...

#4 declan52

declan52

    Advanced Member

  • Members
  • PipPipPipPip
  • 3,087 posts
  • LocationCo. armagh

Posted 16 March 2016 - 05:38 PM

All the bank want to know is can you make the monthly payments and can prove it. They won't care who does the work as long as it's up to building control standards.
Just be careful about what you think your skills will actually let you do work wise. Might be cheaper to get a pro in to do it once and do it right.

#5 temp

temp

    Advanced Member

  • Moderators
  • 10,200 posts

Posted 16 March 2016 - 05:58 PM

Quote

I have a healthy deposit for land and build so it should be fine as far as numbers are concerned.

I wouldn't be in a hurry to spend all your savings on the land or early part of the build. At todays rates it might be better to at least try and borrow for the land and keep as much of your cash as possible until the end. If there is a cost over run it's much easier to spend your own money than go back to the lender for more.


#6 AlexC

AlexC

    Member

  • Members
  • PipPip
  • 83 posts

Posted 16 March 2016 - 09:27 PM

Banks are going to be very interested in how much you earn,they are not very keen on lending to unemployed people. I wouldn't be telling them that you are not earning and are working full time on the build. If you are borrowing for the land the banks are very exposed to risk until you get some kind of decent structure on site that is worth something to them. Up until this point you could have spent quite a bit of their money and not have much to show for it.

#7 jayroc2k

jayroc2k

    Regular Member

  • Members
  • PipPipPip
  • 297 posts

Posted 17 March 2016 - 07:20 AM

Very good advice above.
In fact, since the introduction of affordability rules in 2014, banks have to comply and check you can not only afford the mortgage but can afford it at a minimum advised rate of 5%.
Banks will use their standard variable rate or 5%, whichever is higher.

#8 Didi1980

Didi1980

    New Member

  • Members
  • Pip
  • 5 posts

Posted 17 March 2016 - 09:08 AM

Thanks everyone for the advice, that is really helpful. I am realistic enough to not rush into things that make no sense. And I also think it is a good thing the banks calculate with a theoretical rate of 5% because although we have low interest rates now they will go up eventually. And if people max their budget now they will run into trouble.

I would like to do lots myself but it looks I wont do it full time. It also lets me sleep better knowing I work full time and money is coming in. I will just have to allow a bit more time to finish the build but that is ok when done so from the start.

#9 PeterW

PeterW

    Regular Member

  • Members
  • PipPipPip
  • 876 posts

Posted 17 March 2016 - 03:35 PM

5% is not theoretical for some of the advance stage self build mortgages - I've seen a range from 4.49% to 5.29% and there are very few that are in the same ballpark as the low rate trackers you can get on a normal house.

#10 Beehive

Beehive

    Member

  • Members
  • PipPip
  • 12 posts
  • LocationHampshire

Posted 01 April 2016 - 06:37 PM

Hi,
The loan is something I am guessing you are looking at over say 10-20 years, but the build is one year and then no job to pay off the mortgage.
They will be looking at how you plan to repay the loan. If you have that sorted then they should lend,but if not then it is doubtful.

I have just done the same though!
Wifes income, job plan and build is to rent out not live in pay the (small) mortgage.