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Clever money people please help!

(3 Posts)
Fedupofallthemud Thu 07-May-15 19:05:48

Hi
We are going to be doing self build project. We have self build mortgage for most of the cost of this and plan was to fund the rest with the equity from selling our house.
So far so good. However houses locally are not selling as we are pretty fed up waiting to get started. We have been looking into renting out our existing house instead of selling. Mortgage broker has found us a BTL mortgage which he's been advised we would get no problem.

However this leaves us a bit short for the cost of self build -roughly 50k so not an insignificant amount. (But we do have combined salary of 6 figures so we won't be overly stretched with mortgage repayments)
Has anyone got any suggestions about best way to fund the last part of the build? By the time we receive final invoice the house will be finished but we will only have 14 days to pay.

We have been told we can get a normal mortgage for the full amount we need once house is built, but this can only be used to pay off self build mortgage not any other debts. Does that sound right? I wondered if there might be some kind of bridging loan we could use?

If anyone has any clever ideas please let me know. I'm racking my brains but not come up with the answer yet.

Thanks for any suggestions.

fuzzyduck1 Thu 07-May-15 20:10:02

If your income is that much couldn't you take it out as a personal loan? I know the rates will be higher but if you can pay it back quickly or repay the loan when the house is complete by getting a mortgage out on the property.

Fedupofallthemud Thu 07-May-15 20:41:07

Thanks fuzzy
The problem is the mortgage company said we could only use mortgage to pay off self build mortgage not any other debts. Which I thought was a bit strange but I assume it's true. Maybe something to do with getting mortgage on new build house??

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