Hypothetically: a 25 year old male in Hertfordshire, UK - on a salary of £26k/annum, with an average credit history, applies for a self build mortgage of £300,000 with a prepaid deposit of £80,000. Build cost estimated at a £250,000 maximum with a £50,000 contingency. Finished property worth a estimated minimum of £600,000. Build time estimated at one year. Mortgage payback over a 25 year period.
Thanks for reading, I'm a trained architectural engineer, I've always wanted to build my own house and fully plan on achieving it, I know the building side of it but the economics in terms of mortgages and their surroundings was never touched on, and I have no experience dealing with anything like this either - What would you say the likelihood is of the hypothetical situation above being realistically possible? Please give any reasons why, and more importantly, ways In which I could make it more likely.
Added (1). Thanks for the help so far… My designs are far from being in any stage where they could be worked from; but so far material costs, work force, technical/legal charges, furnishings (and a few similar case studies) put this build at under £100,000 (without land of course) - as it is 2 bedroom design made from recycled materials I have access to. Also looking at a piece of land being offered to me at 125k (with a 5yr availability for residential planning permission on a conditional basis).
Read more: What are the chances, that a 25yr old on 25k per annum, could acquire a 300K self build mortgage?
