Full Time Project Managing And Self Build Mortgage
Posted 16 March 2016 - 04:01 PM
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
Posted 16 March 2016 - 04:19 PM
Posted 16 March 2016 - 04:24 PM
Posted 16 March 2016 - 05:38 PM
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.
Posted 16 March 2016 - 05:58 PM
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.
Posted 16 March 2016 - 09:27 PM
Posted 17 March 2016 - 07:20 AM
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.
Posted 17 March 2016 - 09:08 AM
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.
Posted 17 March 2016 - 03:35 PM
Posted 01 April 2016 - 06:37 PM
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.