Mortgages on building your own house

Nuttzz

I have a plot of land & I can get PP for a bungalow, whats the craic with getting a mortgage does anyone know, how do they value it etc?

Specky

Yes they value the building based on the projected market value what you have planning for.

If you get mortgage approval you then start the work and draw down chunks of your mortgage at a number of stages during the construction, subject to approval of a surveyor (sometimes your architect can do this, sometimes the bank have specific surveyors they use, you have to ask them how they want it done).

Sometimes (if you're lucky) the bloke doesn't even come to site, he just rings the builder and asks him if it's done. Depends on if you've got a good builder/surveyor or if you've got a miserable bollix.

Generally you get a chunk of money at sub-floor level, another at wall plate, another when the roof's on and another on completion.

Last payment is usually the arkward one because your solicitor will not approve the final payment from the mortgage company until they are satisfied that all conditions on your planning permission have been met...also the last stage is often the most expensive one so you've got loads of people chasing you for money at this stage too.