New Build Bungalow

[Gallagher]

Not anytime too soon but in the the 2-3 years I'm planning to build a house. Theres a few things I don't really understand though so I thought I'd see if your good selfs could pass on any advice. :) How does the process go, is it normal to buy the land yourselves first & then apply for a mortgage or do people use their mortgage to buy the land? What sort of price all in are we talking about to build a 3 bedroom bungalow (not including the labour) ie materials etc? Any tips, information etc would be much appreciated.

[Phill]

It might have changed recently with the financial crisis etc. but you'll find it hard to get a mortgage on a plot. Generally you'll have to remortgage any existing property and do it that way.
During the build process you will need a specific building mortgage (if they still do them) or in effect a business loan until the property is complete and then convert to a mortgage.

[Gallagher]

It might have changed recently with the financial crisis etc. but you'll find it hard to get a mortgage on a plot. Generally you'll have to remortgage any existing property and do it that way.
During the build process you will need a specific building mortgage (if they still do them) or in effect a business loan until the property is complete and then convert to a mortgage.

Thanks very much for your reply. I did think the financial crisis would play a major part on the way to go about things.