Paying for a Newbuild house

[sailorbaz]

I know this may sound like a very stupid question, so please bare with me but...How do you go about paying for a newbuild house? As in, buying the plot and building your own?

We've already got the plot in Northern Ireland and planning permission has been applied for but obviously (well, obviously for me anyway) I don't have £150K lying under the mattress to pay for the house and garage itself.

Do you approach the mortgage lenders with the building permission and plans, cost quote from builders etc, they then estimate what the house will be worth when complete and loan you the money from that? Minus any deposit they require obviously. The fact that we already own the plot, 1/4-1/2 Acre (so, 3/8 Acre! :banghead:), will that suffice for a deposit?

I see houses being rattled up all around up by people from all walks of life and wonder how the fcuk they can afford them to be honest.

Thanks in advance and wasn't sure where to post this to be honest. :whistle:

[the bear]

Hi Baz,

I built my own house and I had my own site and the mortgage company did not ask for a deposit, so you should not need a deposit because you already own the site, the mortgage company will ask you for the deeds for the site and thats your deposit. If you were a little closer to me I would give you a good deal on blocks and readymix concrete saying thats what I manufacture.

Cheers,

GARY.

[sailorbaz]

Well Gary, I can see Newry is about an hour from Cookstown? We're building about 10 mins from there, on the Lough Fae road pretty much, towards Draperstown, home of the Twin-Cam!

Thanks for the input, as mentioned waiting for building permission and hoping to hear soon but fear we may have to apply another once at least as that seems to be the way over here.

Thanks for the offer! :beer:

[whopwop]

just PM'd you Baz

[sailorbaz]

Got it Mark, cheers.
Baz

[jonv]

I did a self build a few years ago and used `build store`.

They provide the mortgage and after the intial money to get started, they relese further payments at various stages of the build, i.e. once oversite is in, once shell is watertight etc.

I found them very good, although the rate was fairly high, I wasn`t tied in for a long time.

If you do a self build don`t forget site insurance!! It isn`t that expensive, but will provide full cover during the build for materials, tools, fire damge etc.