Finance/mortgage on residential new build

[wickedtopspeed]

Hello All,
Does anyone have any experience on getting a mortgage to fund a new build home ?
Own the land already, and have assets, but not lots of income.

Have heard horror stories on cost of such borrowing - but keen to hear any experiences from ph'ers.

Many thanks

[Sarnie]

wickedtopspeed said:

Hello All,
Does anyone have any experience on getting a mortgage to fund a new build home ?
Own the land already, and have assets, but not lots of income.

Have heard horror stories on cost of such borrowing - but keen to hear any experiences from ph'ers.

Many thanks

I assume you mean "Self Build" rather than "New Build"?

[wickedtopspeed]

Yes, sorry !

[kurt535]

Mortgage lenders have become tts since it blew up in 2009. The rules look to tighten in some way or another on a regular basis too.

I was recently in the same position as you. I spent a year developing a house and getting planning for a house in the garden. I toyed with self building but quickly realised as I had spent all year doing the house and plot, the lenders didn't really care I was sitting on a rather large locked in profit. The fact I wouldn't be paying tax on any of it meant as far as they were concerned, I hadn't earned.

In the end, I chose to sell the land first, then the house. Hindsight, I am pleased that I did. CIL's have become a stealth PITA tax meaning I had to keep the house for 3 years to avoid paying them.

So, every case is obviously different but I would rather get planning, sell plot and move on.