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Proof of funds from sale of current home for self-build mortgage question

  • 28-11-2021 5:05pm
    Registered Users Posts: 1 sunshinecats

    Hi all, I've a question regarding applying for a self-build mortgage (main contractor).

    Myself and partner are selling a house we bought with a mortgage a couple years ago. We are now applying for a new mortgage for a self-build. We already own a site/have planning.

    We haven't got a lot of savings, but are wondering whether the bank will accept the money left over after paying off the old mortgage as proof of funds?

    The remainder of funds from the sale of the current house will be more than 50% of the build cost, with the amount we are looking to borrow being about 35% under the max amount the bank is willing to lend to us.

    We've gone sale agreed, deposit paid, etc., but are yet to sign the contracts.

    What is the best way of portraying the "proof of funds" on our mortgage application in this situation? We'd be keen to hear from anyone who's been in a similar situation.