Business
Mortgage Business
Loan Buy
To Let
Building Development Lending
Previously
this type of mortgage was generally only offered by the
traditional banks, however now
certain
lenders have developed and tailored new more flexible
products to meet the growing demand for this type of mortgage,
with more people taking this project on due to the large
demand in UK housing and the potential large profit but
with all business ventures it carries high risk and profit
can never be guaranteed.
For
a build yourself mortgage traditionally lenders would
lend in arrears in staged payments. These loan payments
are released reached each time a certain amount of the
building work is completed and successfully signed off
with generally a low loan to value.
This meant the borrower would have to put down a large
deposit. Now it possible to obtain no early repayment
charges on completion, higher loan to values up to a maximum
of 95% and stage payments being released in advance obviously
depending on a borrowers individual circumstances.
The
95% higher loan to value can be on the land purchase and
95% of the building costs. This enables the borrower greater
cash flow ability over the project. Also this type of
mortgage can be set up and run whilst the borrower still
has their old property mortgage in place.
On
mortgage application the plot of land to be purchased
will need outline planning permission, a break down of
building costing, architechural drawings and a property
legal pack. This loan can be available to the employed
and self employed on a self certification bases if required.
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