85% Self-Build Mortgages & Property Refurbishment Mortgage

More and more people are enjoying the benefits of building their own house during the economic recession. In fact the number of new build and renovation projects started by enthusiastic would-be home-owners rose by a staggering 30% in 2008.

This is not as surprising as it first sounds, when you realise that you only need a 15% deposit to purchase a suitable piece of land or derelict house! But the good news doesn’t stop there – you can also borrow up to 85% of build costs, or renovation costs. This is an amazing fact when you consider that every other lender has slashed its lending criteria over the last 24 months and borrowers are being asked for ever higher deposits.

Borrow 85% of the Purchase price and a further 85% of the build or renovation costs

With this new scheme you receive 85% of the purchase price to buy the property, regardless of its condition, and then the lender will release even more cash to fund 85% of each stage of works.

With this scheme you can borrow up to £300,000 in total as long as the finished property value is not less than £453,000*. If you have a larger project, the lender can extend borrowing up to £500,000**. in which case the finished property would need to be worth at least £625,000

Properties can be virtually anything from a simple plot of land for a self-build, or any house, bungalow, or cottage, whether detached, semi-detached, or terraced, if you are planning a renovation, or refurbishment project.

There’s also an experienced team to source architects, materials and manpower, if required and a firm of solicitors who know just how to deal with these projects to provide you with peace of mind throughout the buying process. Another point worth mentioning is that if you pay less than £175000 for the property and the finished house is worth, say £400000 you won’t pay any Stamp Duty at all. You can also reclaim all of the VAT on costs of materials once the project is completed.

All in all, self-builds and renovation, or refurbishment projects are thriving in today’s market and with automatic built-in equity they’re virtually recession proof.

* Maximum 85% LTV for mortgages up to £300,000

** Maximum 80% LTV for mortgages up to £500,000

For more information call us today and speak to our expert mortgage advisor.

Telephone 0117 2232 050