Mortgages for building a house

skywalker_208

Just wondering if is is possible to do this? Apply for part of the mortgage to cover the cost of a site and have low repayments for a while until you are ready to build your house.

Then get it topped up to build your house.... bringing the repayments up etc...

Would this be a remortgage? Or is it even possible? Was just a thought...

Pataman

Fairly common nowadays. You get a lump sum to buy the land and draw down the rest as the house progresses with architects certs.

Victor

It's quite normal and you can do it through bridging finance or simply by drawing down the payments in stages.

It does cost more and has more paperwork (you need someone independent to value the drawdowns).

You could also postpone payments (by agreement) until you move in, but it costs

daveg

We did this years ago. You are approved to your loan limit. Then you draw down in stage payments, ie. buy the site, foundations, when roof goes up, final payment.

yop

Lad

We are just in process of this, they will give you 80% of the value of the site, you have to get an auctioneer to value tot he site and then the site with the house on it.
They will say the site costs X amount, then give u 80% of that.

skywalker_208

Great thanks for the advice!