Can we buy a plot of land with a mortgage against our home?
Posted on 3 March 2016 by Melanie
We have a property worth £435,000 with no mortgage, we have made an offer on a plot of land is it possible to have another mortgage against our property? If so what product should I be looking at? I am 51 and husband 54, the house is currently on the market so ideally low early payment penalties should apply?
You don't mention the how much the land is, nor how much it will cost to build the new home, so I can't really be too specific, however, there are a couple of way to do this.
You could either raise a remortgage on your existing property to fund the purchase of the land and the build cost of the new house (subject to how much you actually need) or raise part on your current home and then the rest as a self build mortgage on the new plot. If you decided to raise a self build mortgage on the land, then it would need to have outline planning as a minimum.
I would certainly recommend it's worth discussing in more detail with one of our mortgage experts on 0344 346 3672.
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