Self Build Mortgages

Building your own home is often a dream for many people and to ensure your dream doesn’t become a nightmare you will need to consider the following when planning your future new property.

Steps to Building your own home

  • Check you qualify for the amount you wish to borrow & Final Grant of Planning is already in place
  • Submit all documents required, including full & detailed breakdown of cost of construction & architect/engineer details.
  • If purchasing a site – provide proof of purchase price. If site gifted, ensure transfer to title underway
  • Valuation will then take place.
  • Sign Loan Offer with Solicitor and ensure remaining Loan Offer Conditions have been met.
  • Site will then be purchased. If gifted site, commencement notice can be given and works started after notice period.

What you need to know about Self Build Mortgages:

  • There are 5 Lenders currently in the Self Build Market – KBC & PEPPER do not offer Self-build mortgages.
  • If site purchased – max lending will be between 75% – 90% for site purchase and between 80% and 90% of cost of construction.
  • If site gifted – max lending will be 100% of cost of construction, although some lenders will expect you to qualify for 120% of cost of construction or provide a contingency of between 10% – 15% of build costs.
  • Costings should be coming in around €85 per sq ft as a minimum, some lenders use up to €120 per sq ft.
  • Both AIB/HAVEN and PTSB insist customers own balance of funds put into the deal “up front” before they will release the first stage payment.
  • Interest Only periods restricted between 12 – 24 months
  • Max Term between 30 – 35 years to max age 65 yrs – 70yrs
  • Minimum Employment term is 12 months in most cases, unless you moved in the same line of work to a new employer and completed your probationary period
  • Joint Mortgage – Single Title is not usually permitted with lenders, although can be considered on a case by case basis by some lenders.

 

Newstar FM Independent Mortgage Brokers. If you are thinking of a Self Build Project make sure to give Tara a call on 0449335443 or at tara@newstarfm.ie

 

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