Want to buy a land lot and build a home. We own our current home and the only debt we have is our home mortgage and about £14000 in credit card debt. We want to buy the land first, and then save some money, then get the construction loan to begin building the house. Would it be better to save money for a down payment for the construction or to go ahead and pay off the credit card debt first? My concern is that the interest rates for loans right now are really good and if we pay off the credit card debt first then wait to save more for a down payment; loan rates will be a good bit higher because that will be about a 2-3 year period

Is your post a wind up?

You have £14,000 in credit card debt, which will be costing you upwards of 18% interest per annum (if not more) you currently have a mortgage and you are worried that you will miss out on a good loan rate to buy a plot of land.

If this is for real you would be better to take out a loan and pay off your credit card debt.

You need to do a lot of research before entering into a self build project, they are complex and cost a lot of money there are not that many lenders that lend in this market currently and your current debt would impact on your ability to borrow. Self build lending is always treated cautiously because of the real risk of overspending and the project not being finished.

I think that you really need to look at your current debt and tackle that before you look to take on any additional borrowing.

Are you also prepared to sell your existing property to raise funds to back the project?