Getting a self build mortgage/loan?

[Cow_calver]

Good morning, i have planning passed on the farm for a house and i plan to have a builder start building probably in feb ive been gathering quotes

Im at thr stage now i need to apply to someone for a mortgage, does anyone know the best people to go with? Heard buuldstore did self builds Ill need 3 month of personal bank statements, 2 years of tax returns and proof of my wifes salary?

Thanks

 

[Cow_calver]

Anyone heard of ecology?

 

[yoki]

Daughter and hubby were in this position three years ago, plans drawn, planning approved for a build on their own farm, and a substantial sum saved between them to get the ball rolling.

They didn't get one approved anywhere.

Hopefully for you Scotland will be easier than here.

Good luck.

 

[Cow_calver]

Daughter and hubby were in this position three years ago, plans drawn, planning approved for a build on their own farm, and a substantial sum saved between them to get the ball rolling.

They didn't get one approved anywhere.

Hopefully for you Scotland will be easier than here.

Good luck.

Aw really what was the issue with getting a mortgage approved?

 

[yoki]

Aw really what was the issue with getting a mortgage approved?

Well firstly, they were fishing in a very small pool as self-build mortgage providers seemed very few and far between.

Refusal was never accompanied by a specific reason, it was always, "sorry, you haven't met the necessary criteria" or something equally vague.

Nowadays you're never communicating with those who actually make the decisions, fill in the forms, send them away, await decision.

Daughter is in full-time employment in a government job, hubby is self-employed but had all accounts prepared and up to date.

It made no sense to us why they were continually refused but there you go.

Maybe being in Great Britain/UK Mainland, call it as you wish, you will have some better options.

I think England has a government sponsored self-build scheme of some sort possibly????, perhaps there'll be something similar in Scotland.

 

[Werzle]

Good morning, i have planning passed on the farm for a house and i plan to have a builder start building probably in feb ive been gathering quotes

Im at thr stage now i need to apply to someone for a mortgage, does anyone know the best people to go with? Heard buuldstore did self builds Ill need 3 month of personal bank statements, 2 years of tax returns and proof of my wifes salary?

Thanks

If its ag tied to the farm why cant you get a bank loan instead of a mortgage/ add it on too current farm loan or increase farm OD to pay for it

 

[KB6930]

Me and the wife did one 3 yrs ago It was with the Halifax. We went through a broker and that's the last one he did and will do as it was so much hassle .

Ours wouldn't pay out until the land was registered to us . Long story short is I bought land off my boss but applied for planning first as nobody else was ever gonna get it . Got planning and got started building then they wouldn't pay out because it tool ages getting through register house and into our name

 

[yoki]

If its ag tied to the farm why cant you get a bank loan instead of a mortgage/ add it on too current farm loan or increase farm OD to pay for it

Farm is business, building yourself a house is personal.

They could have gotten a loan to build a new beef unit reasonably simply, but not build a "unit" for themselves!

 

[Hill Ground]

Good morning, i have planning passed on the farm for a house and i plan to have a builder start building probably in feb ive been gathering quotes

Im at thr stage now i need to apply to someone for a mortgage, does anyone know the best people to go with? Heard buuldstore did self builds Ill need 3 month of personal bank statements, 2 years of tax returns and proof of my wifes salary?

Thanks

We found a self build mortgage was alot of hassle and hoops to jump through.

We went to oxbury, they lent us the money as we could borrow against the land without asking to many questions at all.

 

[MGS6930]

We've just been through this process, Rural Finance were by far the best to deal with, there is a consultation fee though.

 

[Werzle]

Farm is business, building yourself a house is personal.

They could have gotten a loan to build a new beef unit reasonably simply, but not build a "unit" for themselves!

Workers dwelling isnt personal and the ag tied dwelling will increase the value of the farm. Be a no brainer for the bank, borrow 200k to build a house worth 450k. Chicken units building managers houses wouldnt be getting mortgages, it would be bank loans

 

[ffukedfarmer]

Farm is business, building yourself a house is personal.

They could have gotten a loan to build a new beef unit reasonably simply, but not build a "unit" for themselves!

Wrong. The only way we could finance our ag tied dwelling was with a business loan.

If yours isn’t tied then maybe a business loan with a view to switching to a residential mortgage at some point

 

[Kidds]

Son borrowed off family including myself until completed as he couldn't get a mortgage until it was a house.

 

[AR Enviro]

Daughter and hubby were in this position three years ago, plans drawn, planning approved for a build on their own farm, and a substantial sum saved between them to get the ball rolling.

They didn't get one approved anywhere.

Hopefully for you Scotland will be easier than here.

Good luck.

Progressive and Danske are ready and willing to lend to self-builders in NI if it is affordable and the future house is sellable.

I continually hear about farmers' sons/daughters failing to get mortgages and it nearly always comes down to farmers paying themselves £12,570 per year, trying to build a house too close to the farm yard, illegitimate rights of way ("Daddy says we can use the lane") and questionable site ownership.. I've seen a few over here where father has refused to sign over the building plot or placed a 2m zone around the site with a right of way on the drive.

Mortgage lenders are taking all the risk so the day they buy is the day they sell.

I know with my initial progressive self-build I had to prove that I had 25% of the mortgage value sitting in reserves.

 

[Cow_calver]

Daughter and hubby were in this position three years ago, plans drawn, planning approved for a build on their own farm, and a substantial sum saved between them to get the ball rolling.

They didn't get one approved anywhere.

Hopefully for you Scotland will be easier than here.

Good luck.

what country was it in?

 

[Cow_calver]

Well firstly, they were fishing in a very small pool as self-build mortgage providers seemed very few and far between.

Refusal was never accompanied by a specific reason, it was always, "sorry, you haven't met the necessary criteria" or something equally vague.

Nowadays you're never communicating with those who actually make the decisions, fill in the forms, send them away, await decision.

Daughter is in full-time employment in a government job, hubby is self-employed but had all accounts prepared and up to date.

It made no sense to us why they were continually refused but there you go.

Maybe being in Great Britain/UK Mainland, call it as you wish, you will have some better options.

I think England has a government sponsored self-build scheme of some sort possibly????, perhaps there'll be something similar in Scotland.

that must be annoying that they didnt say why, did the self employed hubby have 2 good years of accounts behind him?

 

[Cow_calver]

If its ag tied to the farm why cant you get a bank loan instead of a mortgage/ add it on too current farm loan or increase farm OD to pay for it

im trying to do it seperate from the farm with wife, i think business loans look like higher interest rates?

would the likes of AMC loan me money to build a house between me and wife? i am a partner in the farm business

 

[Cow_calver]

Me and the wife did one 3 yrs ago It was with the Halifax. We went through a broker and that's the last one he did and will do as it was so much hassle .

Ours wouldn't pay out until the land was registered to us . Long story short is I bought land off my boss but applied for planning first as nobody else was ever gonna get it . Got planning and got started building then they wouldn't pay out because it tool ages getting through register house and into our name

the plot went from the business into mine and wifes names 2 years ago

 

[Cow_calver]

Farm is business, building yourself a house is personal.

They could have gotten a loan to build a new beef unit reasonably simply, but not build a "unit" for themselves!

yes im curious about this, if my mortgage application is unsucessful i would need to try and get a business loan but who would do them given that im doing it jointly with wife who isnt in business? i can put land down as security

 

[Cow_calver]

We found a self build mortgage was alot of hassle and hoops to jump through.

We went to oxbury, they lent us the money as we could borrow against the land without asking to many questions at all.

interesting do you think theyd lend up in scotland too? i can put land as security but what sort of interest rate as it would then be business rather than personal??