Mortgage to buy oldhouse and rebuild

[kashn]

I'm interested in buying a house that has planning permission to be knocked down and a new house built in its place.
Would I be able to get a mortgage on the existing property (75% LTV) with a view to knocking the house. Ideally I want an offset interest only mortgage. Not really asking for much!!

[HoHoHo]

I'm toying with the idea of knocking our house down and re-building so am in a similar position.

Short answer from HSBC to me (regardless of my LTV was less than 30%) was no, they lend on a property not land so once the house is knocked down they've lost their security.

I've phoned a friend in the mortgage business and in order to secure the best rates you need to borrow to perhaps buy another property or extend rather than self-build, HSBC are not alone in their lending criteria.

Essentially you've got to commit fraud and lie or be stung on rates.

I haven't done anything else yet and am still looking at my options.

[RWA441]

I'd have a chat with buildstore.
When we did a self build they were very good at sorting our mortgage for land purchase and releasing money for each stage of the build. They also do house renovation mortgages too (or did do)
The one we had at the time was an accelerator type I think, this gave you the money upfront of each stage of the build as opposed to being in arrears at each stage.

[baptistsan]

Am interested in how this works. Can not find anything I can afford in my area, so considering going self build.

With my deposit, how do I divide it between the land purchase and the build? Do I just split it 50/50?

[Timmy40]

Try Handelsbanken