Mortgages for self build- anyone getting them and %

ewanalex

We finally were approved our mortgage after jumping through hoops. We ended up going direct with Bank Of Ireland, even after 2 attempts with the broker!? Strange I know but it worked! We do have to have 15% deposit which equates to approx 35k. It's more do-able than the 50k they originally wanted.
We have to spend 30k of our own finances on the site.... will be an interesting year ahead!

just do it

ewanalex wrote: »

We finally were approved our mortgage after jumping through hoops. We ended up going direct with Bank Of Ireland, even after 2 attempts with the broker!? Strange I know but it worked! We do have to have 15% deposit which equates to approx 35k. It's more do-able than the 50k they originally wanted.
We have to spend 30k of our own finances on the site.... will be an interesting year ahead!

Congrats on getting mortgage approval and good luck with the build. Great time to be building.

Can I ask one question - have you other debts? Particularly any negative equity?

ewanalex

Hi,

Yes we have denbt between us, to be fair I was forced to pay off a loan I had outstanding so now I only have my credit card which is a couple of thousand and my dp has approx 9k outstanding on a loan. Other than that we have no other debt, no negative equity, I would imagine that would be a whole other situation....
It was really difficult to get it, but we fought hard! After our planning permission struggles we were not going to fall at the last hurdle.... Now the fun starts:rolleyes:

mmc2010

congrats Ewanalex, that's fantastic news! another problem sorted....we still haven't got our mortgage. We've applied via a broker, but like you, it could take months. Thankfully we've now got all of our loans paid off and our savings are still in tact so hopefully that may help. We will wait and see.....

ewanalex

Good luck to anyone trying for a mortgage at the moment, it's not easy.

If it helps it was Bank Of Ireland in the end that decided to take a chance on us. And we are based in Westmeath.

I guess we have strong earning power but our savings were severely hurt when we were forced to pay off the majority of outstanding loans, so it just meant we had to save hard and quickly to get the deposit back up (and some/lots of help from the parents)

We have the loan offer now, but i'm hearing horror stories on other threads about drawing down disasters as the build progresses! I have learnt a lot from boards.ie!

mj_mam

Good to hear people are being granted mortgages.

Been in talks with BOI, but just waiting on planning now before we start the fun of applying for the mortgage.

Would love to know what our chances are.
I am going for mortgage alone as dp is unemployed (basically, a blocklayer and very little work). My earnings amount to approx just under 39,000 gross. Really hoping to secure an amount of 140,000 (still waiting on QS to come back with approx price of build), as my dp will do all ground works and block/stone work and we've other relations/friends in various trades going to do the other work.

Even though we're not at the stage of applying yet I'm praying everyday we get approval for it, providing we get planning approval, oh lord pleeeeease!

Tom123

Hi All,

Currently looking at a site in the Dublin region with full planning permission for a 200sqm house. Rough estimate of build costs is about €250k (I'm guessing )

I currently earn €100k and my wife earns €60k. We have existing debts of about €10k but will be all repaid in 1 year.
Have savings of about €30k and will have €50k come June (guaranteed bonuses)

What percentage of site would we be able to get, what percentage of build costs and would we need to have the full deposit before they would allow us to purchase the site?

ewanalex

Hi Tom123

Looking at your figures you should have no problem getting a mortgage, best you go in and have a chat with them and get the ball rolling.

Once your jobs are secure and you have a history of some savings then I can't see a problem with your case as you sound pretty much exactly where we were.

We are building a 250MSQ and we are looking at under 200k mark down, we are negotiating every cent and plan to get this down further!

We have been asked to put 30k of our own savings towards site cost of 50k, bank will put forward 20k.

Regarding building costs, we will contribute 5k and they will put forward up to 225k so in theory we are only borrowing 215k for a 250k house + site.

We have been approved 225k though. Hope this helps.

Tom123

ewanalex wrote: »

Hi Tom123

Looking at your figures you should have no problem getting a mortgage, best you go in and have a chat with them and get the ball rolling.

Once your jobs are secure and you have a history of some savings then I can't see a problem with your case as you sound pretty much exactly where we were.

We are building a 250MSQ and we are looking at under 200k mark down, we are negotiating every cent and plan to get this down further!

We have been asked to put 30k of our own savings towards site cost of 50k, bank will put forward 20k.

Regarding building costs, we will contribute 5k and they will put forward up to 225k so in theory we are only borrowing 215k for a 250k house + site.

We have been approved 225k though. Hope this helps.

Thanks, the problem for us is the site cost could be €250k. If they ask us for 60% of that we might have to save until we are 50!

ewanalex

Tom123 wrote: »

Thanks, the problem for us is the site cost could be €250k. If they ask us for 60% of that we might have to save until we are 50!

I see where your difficulties lie...

I'm afraid my answer is unhelpful as you will be trying to get a mortgage much higher than we were, however your figures are positive and savings strong so with a little bit of a fight with the banks i think you should be OK, but i would definately set up a meeting ASAP to discuss it with them, as it is a lot easier to work along side the banks than fight against them. Prove that you are willing to do whatever it takes to get this mortgage and develop a relationship with your bank.

Good luck, hopefully someone else on here has something more constructive to offer in terms of advise.

sydthebeat

250K for any site in todays economy is really hard to justify

hard to see any financial institution agreeing with that valuation.

mmc2010

ewanalex wrote: »

Hi Tom123

Looking at your figures you should have no problem getting a mortgage, best you go in and have a chat with them and get the ball rolling.

Once your jobs are secure and you have a history of some savings then I can't see a problem with your case as you sound pretty much exactly where we were.

We are building a 250MSQ and we are looking at under 200k mark down, we are negotiating every cent and plan to get this down further!

We have been asked to put 30k of our own savings towards site cost of 50k, bank will put forward 20k.

Regarding building costs, we will contribute 5k and they will put forward up to 225k so in theory we are only borrowing 215k for a 250k house + site.

We have been approved 225k though. Hope this helps.

Hi ewanalex, that's impressive costings! well done! are you planning on going direct labour or contract? we are coming out at around 190k for a builders finish on a 236sqm house. Are you including finishing it ie, kitchen, tiling etc in the 200k?

ewanalex

mmc2010 wrote: »

Hi ewanalex, that's impressive costings! well done! are you planning on going direct labour or contract? we are coming out at around 190k for a builders finish on a 236sqm house. Are you including finishing it ie, kitchen, tiling etc in the 200k?

I'm afraid to respond to your query in case i get into trouble with the Mod's as this thread is about getting a mortgage...

I have posted in another thread about my costsing before (hopefully the correct one);)

mmc2010

ewanalex wrote: »

I'm afraid to respond to your query in case i get into trouble with the Mod's as this thread is about getting a mortgage...

I have posted in another thread about my costsing before (hopefully the correct one);)

Ha! I hear you ewanalex! just wondering....what type of documentation did BOI request - outside of the usual p60, bank statements etc? did you have to present your planning permission, builders quotation etc?

Troy McClure

mmc2010 wrote: »

Ha! I hear you ewanalex! just wondering....what type of documentation did BOI request - outside of the usual p60, bank statements etc? did you have to present your planning permission, builders quotation etc?

We have done 2 drawdowns on a build mortgage. As far as application goes the only thing I can think of the didn't ask for was for great grand parents second driving licence. The are OTT now on the due diligence.
Worst thing is they keep losing things. One document we had to furnish 3 times! even after first drawdown was done. The girl at the mortgage section at our branch was absolutely livid with how their mortgage dept in Dublin are carrying on.
I dont know how anyone is geting a self build mortgage for direct labour. We had to have very complete costings from the builder done and I could not see them accepting anything from anyone else.
Allow time to deal with them, for as sure as you think you have given all thats required, even if they have said yes thats fine! they will turn around again and find something wrong with it. Fact is they are trying not to give out money.
Good Luck, be patient and allow plenty of time.

sas

Troy McClure wrote: »

We have done 2 drawdowns on a build mortgage. As far as application goes the only thing I can think of the didn't ask for was for great grand parents second driving licence. The are OTT now on the due diligence.
Worst thing is they keep losing things. One document we had to furnish 3 times! even after first drawdown was done. The girl at the mortgage section at our branch was absolutely livid with how their mortgage dept in Dublin are carrying on.
I dont know how anyone is geting a self build mortgage for direct labour. We had to have very complete costings from the builder done and I could not see them accepting anything from anyone else.
Allow time to deal with them, for as sure as you think you have given all thats required, even if they have said yes thats fine! they will turn around again and find something wrong with it. Fact is they are trying not to give out money.
Good Luck, be patient and allow plenty of time.

We're direct labour. We're attempting to draw down the last main stage i.e. we're leaving the final 5k for retention based on completed valuation. We're fully aware we'll never see that part.

The mortgage company keep requesting further info. We heard on friday that there was a further request for info. coming but we don't know yet what they want. My wife worked in a mortgage brokerage for most of the boom and dealt alot with this specific lender. She has no idea what if anything more we can give them.

Very nerve wracking. We've spent it. We're nothing left. We need about another 80k to get us in. Our site insurance expires at the end of March and there is no extending it. We managed with much begging to get them to extend once already. There is no hope this time. This hopefully will help focus the mortgage companys mind, "their" asset will be uninsured 7 weeks from now.

BryanF

best of luck with it sas, I'd be interested to see does the insurance issue rattle them..

ewanalex

mmc2010 wrote: »

Ha! I hear you ewanalex! just wondering....what type of documentation did BOI request - outside of the usual p60, bank statements etc? did you have to present your planning permission, builders quotation etc?

Hi,

We were requested to present 6 months of the usual bank statements, savings statements and salary certs etc.

Then we also had to provide a full and detailed builders quotation and yes we had to show we had the planning permission too. The first builders quotation we gave was far too conservative for them and they more or less told us it had to be higher!? They didnt agree with the builders quote and then we had to go back to our buidler to get a more detailed quote, our builder wasnt too keen on providing this especially since we havent fully decided on our builder yet, or even if we are going direct etc. Weve learnt so much in all this time planning that we think it is possible for us to give the direct labour route a shot... but this remains to be seen. The important thing is we presented what was needed to gain the mortgage....at last! :rolleyes:

liamolaighin

clarelady wrote: »

Hey We are in planning stages and wanted to start having a look at mortgages and if we would get one, with the current climate and all. Would love to hear people who have got them recently and if so what % are banks giving ie 100% of build cost or another %.We have site for free (family ) so only need build cost , so on a total basis what % would we get based on peoples recent information. We unfort have another house in Dublin that we wont be able to sell - so will rent out this which should more or less meet mtg payments but this prob will be a negative for us, so would be interested to hear of anyone in similar situation. thanks

Financial solutions in Douglas in cork did for me what no bank manager could. So
Show they managed to get me approved with my partner. Also own house in cork but they took all our details and made a case for us. They will be very honest with you regarding your suitability to banks. Have all your documentation in order upfront and the fee they charge may be reduced. Well worth every penny to us though.

mmc2010

Folks, going slowly insane here.....am applying for self build mortgage at present. Is it justified that bank would request engineers report at initial application. For AIB, this is very elaborate and I cannot see how the engineer would complete it without full disclosure of the builder. While we have received a quote from the builder we have exactly told him he's got the job and we're hoping to do some further negotiation! how have you got around this?

muffler

mmc2010 wrote: »

Folks, going slowly insane here.....am applying for self build mortgage at present. Is it justified that bank would request engineers report at initial application. For AIB, this is very elaborate and I cannot see how the engineer would complete it without full disclosure of the builder. While we have received a quote from the builder we have exactly told him he's got the job and we're hoping to do some further negotiation! how have you got around this?

It may be just a quotation they require and not necessarily the contract documents for an appointed contractor.

Perhaps a breakdown of costs from your engineer will suffice. I have done this a few times myself for self builds where direct labour was involved and there was never a problem.

mmc2010

muffler wrote: »

It may be just a quotation they require and not necessarily the contract documents for an appointed contractor.

Perhaps a breakdown of costs from your engineer will suffice. I have done this a few times myself for self builds where direct labour was involved and there was never a problem.

Thanks Muffler, have these reports been in the recent past? I asked the broker whether a comment saying that these costs were included in the builders price would suffice and he said no, that they needed to be broken down.... it makes it very difficult....

sas

BryanF wrote: »

best of luck with it sas, I'd be interested to see does the insurance issue rattle them..

Got news this morning, we're under way again!

muffler

mmc2010 wrote: »

Thanks Muffler, have these reports been in the recent past? I asked the broker whether a comment saying that these costs were included in the builders price would suffice and he said no, that they needed to be broken down.... it makes it very difficult....

I prepared a breakdown of costs for clients to complete a house about 6 months ago. The estimate was €95k and i simply itemised about 12 - 15 various items, put it on headed paper, signed it and that was it. The mortgage was with BOI.

I did the same on a couple of new builds going back 12 - 24 months. No contactor quotes or the likes involved but just a detailed breakdown from myself sufficed. I think one couple had a BOI mortgage and the other was P/TSB.

I havent done any breakdown of costs for AIB mortgages as there is a little problem with them (AIB) and people in our profession.

In saying all that different lenders do have different requirements and the paperwork is a lot heftier now than say 4 or 5 short years ago

Fracking Cylon

In the process of talking to banks at the moment. They are just looking for bank statements and pay slips at the moment. One fee they mentioned was a valuation fee, which we have to pay for. Valuer to come and value the site and proposed development before the start and again once it is complete. In total about 250 quid, which is money I'd rather spend on something else. I'll see if I can get them to waive that but probebly not.

Innish_Rebel

Fracking Cylon wrote: »

In the process of talking to banks at the moment. They are just looking for bank statements and pay slips at the moment. One fee they mentioned was a valuation fee, which we have to pay for. Valuer to come and value the site and proposed development before the start and again once it is complete. In total about 250 quid, which is money I'd rather spend on something else. I'll see if I can get them to waive that but probebly not.

Fairly sure they will not waive this - also to watch out you must use a valuer on their list - we were talking to a couple of instiutions and realised either way we would need a valuation done - had to do a bit of checking to make sure the person we used was on both banks approved list!!!

At least one of the banks had given us a provisional thumbs up before requiring valuation - the other wouldn't give us anything until we got it. i.e. we would have to spend the money without the guarantee of getting the loan!!! I'll give you one guess which bank we didn't go with...