Self build mortgages?

[INeedADayOff]

First thing obviously I will contact a mortgage broker and see what they say. I’m just after some general advice from anyone who’s done a self build??

A small plot have land has come up for sale near me and I was going to enquire to the estate agents (did so yesterday as soon as I saw it just waiting for them to call or me to call them today)

Land is 25k it doesn’t have planning currently but I believe the owners once looked at it but never bothered applying.

I’m going to call the planning team this week and talk over planning etc

Problem is we only have around 100k banked (equity from previous sale) and a small mortgage on the house we live in.

So that would leave us 75k so we’d need at least another 100k maybe 150k and would need a mortgage depending on lots of factors obviously.

I did a google and they look really hard? Is this all just a stupid idea? Anyone else done this? I’m not talking grand designs scale just a 3/4 bed

My knowledge is way out of date, as I used to underwrite mortgages including self builds but it was 25 years ago.

Certainly then you would be able to get a mortgage, once it had full planning permission, but it would always be in arrears and very low loan to value ratio, eg 50% of the land value to help with the foundations, 50% of the value at foundation stage to help with the start of the build etc.

It's probably changed but it's worth looking into.

Thanks @doolalleydoris I will call a broker today and see what they say!