MORTGAGE APPLICATION

monaowen

Hi guys. first post here so bear with me if im wrong..in the process of lking for planning on a site of my uncles (pay wat i can when i can)..so my plans are hopefully wen i get planning is to spend money on the house/site..ie cash evey week to digger man, buy blocks, pay builder every week..I'm in no real panic yet..So my question is if say in 1-2 yrs time when i plan to look for a mortgage will the bank recognise the work that has been completed or do they want to see 10,000 in my account..im mot a great saver as i like to see my money going somewher..thanks

killers1

monaowen wrote: »

Hi guys. first post here so bear with me if im wrong..in the process of lking for planning on a site of my uncles (pay wat i can when i can)..so my plans are hopefully wen i get planning is to spend money on the house/site..ie cash evey week to digger man, buy blocks, pay builder every week..I'm in no real panic yet..So my question is if say in 1-2 yrs time when i plan to look for a mortgage will the bank recognise the work that has been completed or do they want to see 10,000 in my account..im mot a great saver as i like to see my money going somewher..thanks

They will take into account the value of the works carried out to date at that time, however, their decision to grant you a mortgage or not will depend on the amount your salary qualifies you to borrow, the amount required and the amount you have proven to the bank that you can afford to repay on a monthly basis.

phormium

Make sure all the work has been supervised by architect/engineer who can sign off on compliance issues etc or you will have great difficulty getting mortgage.

darlett

'Not a great saver' wont really cut it with the banks I'm afraid. They will as said want to see evidence of your ability to make mortgage repayments. Perhaps things will have eased in 1-2 years but hardly significantly I imagine. They will demand at least 6 months of statements for all your accounts and will be looking to see that your comfortably putting aside enough to repay a loan and more still, as they don't want unexpected bills troubling those repayments.

After plenty of effort and time spent preparing an application I recently got soundly rejected by the banks, they were 'happy with my deposit, and happy with the amount I was saving, but THE problem was the amount I am earning.'
(5 years ago i was earning a lot more but living in dublin and unable to save as much, that would be more what she was looking for? Ho-hum!)
Point of the story? If you're not already a member, join your local credit union. Do build up a few grand and you stand a better chance of a loan from then, than from the other crowd of...

cabledude

I would not start construction proper until I had mortgage approval in my hand. Getting planning is fine, but, even to get up to sub floor level is going to cost a hell of a lot of money. What do you then do if you cannot secure a mortgage. Your money is tied up in cement and blocks that you cannot re-sell (unless you sell the site). Proceed with caution here. My barber told me just the other day that c friend of his looked to borrow 130k to put with 50k he already had to but a 180k house. Bank would not talk to him. Credit rating was fine an all. Be careful. Money not easy to come by anymore without wasting it on a house you cannot complete. Hope this helps.