Self Build Mortgages
Self Build Mortgages
The Clare Champion, 4/5/10 - Download PDF
With construction costs at a record low since 2000, the time is ideal for building your own home. We at Carey Corbett have seen a phenomenal growth in mortgage applications for ‘self build’ homes since the middle of 2009. In general, there has been a good mix of young couples with sites of their own and those who have reacted to the great value available and bought sites at good prices.
Despite the drop in Market Values of houses with the drop in the cost of construction, the ‘loan to value‘ of most self builds is still quite strong and the Banks are happy to lend on this basis.
In the case of self build mortgages, if the site is owned outright, you can get up to 100% of the build costs. lf the site is not owned outright you can get 90% of the cost of the purchase and the build. There is a choice of both fixed and variable rates available to you and your finance can be drawn down in a number of stage payments.
The area of stage payments can cause house builders some confusion. Basically, the process allows for a certain amount of money to be drawn down at various stages of the build. ln general. the stages would include planning, foundation level, roof level. plastering and completion.
Stage payments guarantee that you are not paying interest or meeting repayments on money which hasn‘t yet been drawn down or used in the building of the house.
To many househunters, the availability of 100% finance towards the cost of building your dream home holds great appeal to go down the route of self build. ln addition, banks encourage people to allow for overruns which helps ensure they have enough finance available to guarantee the completion of the house.
Top tips for self builds are to get a good architect or engineer on board to adhere to contract prices and to strictly supervise the build. Also cost. cost. cost. . .. Carey Corbett Financial Solutions highly recommend shopping around for all aspects of the build — be it the contract price or the price of the sink. There is great value to be had out there, so be sure to make the most of it.
Finally, with much anxiety and uncertainty in the public domain, people have pulled back from dealing directly with the Banks.
A lot of people now find it easier to deal with an independent broker. In reality, people who can demonstrate repayment capacity and show good banking activity will not have any difficulty in getting a mortgage.
By dealing directly with all the Banks in the market, we take the pain out of the process for the individual and explain all the options available to them and clearly outline the best rates applicable. We can assure you that our doors are open and we are getting mortgages for people.
