View Full Version : Self Build Mortgages
Does anyone have any experience with a self build mortgage? Like how fast the payments should be made when you request the next installment? We are having a wee bit of bother with ours. It is 3 weeks ago yesterday that we requested the next installment and we haven't received it yet. [mad]
When I telephone the bank, the mortgage advisor just waffles about and says he isn't too sure how long it should take, and they are rushed off their feet at the finance department (where ever that might be based!) :roll: The architect doing the valuation for the stages also gets blamed, in fact it is everyone's fault but the banks.
I looked into a self build mortgage but the bank advised against it as it was potentially full of problems, and not as straightforward as it sounds!! Seems like you are having problems - keep on at the bank as they should have enough staff to cope with queries!
I had a self build mortgage with the scottish building society. It was five years ago so I cant remember the exact timescales for the payments but there were definetely no problems with any of them and they all went through relatively quickly.
At the end Oct 2004, The Financial Services Authorty (F.S.A.) took over the regulation of Mortgages, basically means that the FSA are independent watchdogs that make sure you are treated fairly wherever you go. So this can sometimes have a bearing on your type of mortgage. It depends how it is set up. Generally, with self builds they are slightly more complicated as you have arranged stage payments, some institutes are move flexible than others and generally its advisable to go to the lenders with the biggest portion of the mortgage market. You would only be advised by a lender with a non-flexible self build mortgage not bother going down that route. Your market leading institutes will accommodate flexible self builds on a daily basis... Generally, with stage payments, once stages agreed with the lender, when it reaches a stage complete and you request funds, the customer usually instructs another site visit from the valuer and the solicitor requests the stage payment direct to the completion department of the lender. There should be no delay as long as these professionals have been told when to do another site visit and when to request the funds. If this has been done, then your Mortgage Advisor, within FSA regulations, should be able to give you an answer. Or at least find out what stage the process is at. But perhaps you have gone to a mortgage intermediary, who may not have the same access to departments that a direct channel Mortgage Advisor would....
My advise is to phone your Mortgage Advisor and request an update. A Department being busy isn't an answer, you need to know what the position is, is there anything your end that's holding funds up and when should you expect the funds. If you feel you don't get the right response, just ask to be contacted by their Supervisor.
It's all going to depend on your provider, like most things in life now, you pay for what you get. Not always best to go with cheapest or easiest option, especially for a debt such as a mortgage. Best to go for institutes with a good reputation, a decent portion of the mortgage market and local face to face coverage while setting up your mortgage and more importantly a face to face contact for anything relating to your mortgage once its drawndown. It seems harder to find these financial institutes in remote places, but they are out there if you ask.
My brother took a self build mortgage a few years ago and had problems also, it should be down to your mortgage broker to sort out but they don't bother because they've already been paid and there is nothing in it for them.
The best action is to threaten to go to the ombudsman, if they don't get things rolling then just switch to another lender.
Even normal mortgages are are a hassle though, when we bought our house we had trouble because the bank said we needed a £36k p.a. earnings plus 10pc deposit and we were only earning £27k of which we could only prove 10k, in the end we had to go south for a broker who pulled a few strings and we had to put £150 in the surveyors back pocket to over value the house, even then it took about 5-6 weeks to all be done, to make matters worse we were saddled with a very high rate 3pc over base.
JD
Bandite said:
"Best to go for institutes with a good reputation, a decent portion of the mortgage market and local face to face coverage"
I have gone to a well known LOCAL High St, Bank. My own branch in fact. I thought it would be easiest all around if I go through my own bank. Boy was I wrong. However, since I first posted; I have now received an interim installment until things are sorted out. I think I got even that because I had contacted my solicitor and asked him what I should do, and he was making calls on my behalf via his souces outwith the local area. Thanks for all the replies. :o)
I built this way sveral years ago but had no problems. OK, the money took a few weeks to come through, but I found that I could use the patience of the building material suppliers to wait for their money. As they got to know me they didn't worry too much, they are constantly dealing with people who stuggle to pay on time, and they have a cut-off point (I daresay) whereby they won't give you any more materials.
I am not worried about the local guys. They are great at giving you time to pay. It is the BIG suppliers like electricity etc that make you pay up front before they do anything for you. Don't get me started on the water!! [mad] Scottish Water moves sooooooo slow in processing applicatons. As does SEPA.
Try talking to Cormac Miller of Highland direct Insurance, i have used him on my last two mortgages and although none of them were self build he really got us the best deal, through the likes of Abby National and Nationwide etc.
.Best for you or for HIM :~( Did it involve a emdowment policy :D
Powered by vBulletin® Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.