mortgage and building questions?

pat d plumber

hi,

I have just been approved in principle for a morgage for 330000,i need to buy a site and build with this.how big a house will i build for this? if i have been approved in principle how far off getting the mortgage am i?

sinnerboy

what part of the country pat ?

Gumbo

once you have been approved in principle then you could draw down the mortgage next week.

you need to get a firm address for the mortgage company then they will value it then release the funds accordinaly.

i wouldnt be too clued up on the release of funds to fund a self build but im sure one of the guys will be along soon.

remember you need to buy the site, so will you have to hand over money before planning permission is granted or are you thinking of buying a site with planning already granted on it? (this option may be easier for the bank to release the money to buy).

pat d plumber

sinnerboy wrote: »

what part of the country pat ?

Im from wexford

pat d plumber

remember you need to buy the site, so will you have to hand over money before planning permission is granted or are you thinking of buying a site with planning already granted on it? (this option may be easier for the bank to release the money to buy).[/quote]


Im thinking of approaching a uncle about selling me a site,that wont have planning permission,if that fails,there is a few sites around i know of with planning permission

anoble66

not sure what bank you are with but to try and draw down a mortgage within a week with my crowd would be impossible. I got approval weeks ago but then i still needed to provide, letter of supervision from engineer, break down of build costs from engineer, valuation, life insurance, build insurance etc....all takes much longer than expected

kceire wrote: »

once you have been approved in principle then you could draw down the mortgage next week.

you need to get a firm address for the mortgage company then they will value it then release the funds accordinaly.

i wouldnt be too clued up on the release of funds to fund a self build but im sure one of the guys will be along soon.

remember you need to buy the site, so will you have to hand over money before planning permission is granted or are you thinking of buying a site with planning already granted on it? (this option may be easier for the bank to release the money to buy).

Gumbo

anoble66 wrote: »

not sure what bank you are with but to try and draw down a mortgage within a week with my crowd would be impossible. I got approval weeks ago but then i still needed to provide, letter of supervision from engineer, break down of build costs from engineer, valuation, life insurance, build insurance etc....all takes much longer than expected

as i said in my first post that it was based on a standard mortgage application but self build may be handed differently. if you have approval in principle then you could draw down th money for the purchase of a property within a very short space of time.

self builds may be different as the bank will have to go through builders quotes for the works, site valuations, before and after site valuations (to make sure the site and house is worth the money your paying after its built etc etc)

unclebill98

If you have AIP you can not draw down anything until its processed as a full application and everything you said in your AIP application is proven to be true.

This is not a one week job with any bank.

You could secure a site with a booking deposit and then get the bank to move on giving you formal approval. Once the offer letter is signed the your good to go as thats a legally binding contract and you know you good to get the funds ONCE all the conditions are meet.

You good then draw down enough to buy the site and get the ground work started. After the offer letter is issued you have 12 months in which to draw down some funds.

You'll have to hire a engineer who will have to give the bank a letter of supervision stating that you have enough in the mortgage to build the house.

You'll have to get it valued to make sure the LTV is correct as nowadays that sets the interest rate paid.

Basically, get the bank to get a Formal Offer letter to you and look at the conditions, that will give you a firm idea of the time frame to getting the money and also let you know you can meet the conditions for drawdown. There is so much involved in a Mortgage that it can take weeks to get sorted, there is so many people involved in getting it done, architects, engineers, solicitors, doctors(for life cover, if you get ref), Auctioneers, the sellers solicitors, the seller, house insurance, the bank, the various sections of there mortgage dept.....

muffler

Right. Enough is enough.

This is not a financial forum so the thread is locked.