Could I borrow 100% of build costs. Most mortgage companies only offer a maximum loan to value ratio of 75%, however the build costs should only be 60% of the overall value of the property once completed. To enable me to start & finish the project I would have to borrow 100% of the build cost. How does the mortgage lender view this??
A lot depends on how you own the land. If you already own the land outright then it's possible you may get a good deal but if you have a mortgage on the land then it would be much more difficult. If you are hoping to borrow 100% for the land and the build then I have to say you have absolutely no chance.
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