Self build mortgage?

killers1

sunshinery wrote: »

Hi Killers1.

I'm new to this & notice no one has posted in a while but am wondering if you could give some advice??!

Looking to buy a site with boyfriend. Both parents will contribute to buy site for €65k & then we will apply for planning & mortgage.

Boyfriend has a property already in serious negative equity. He earns 65k. I'm loan free & earn 38k. We have combined savings of 25k. Do you have any idea how much we would qualify for? I'm 28, he's 31.

Also if we were to build a house for 180k & borrow that much the house would Prob be worth 250k plus on completion. Would the banks then allow us to re-mortgage so we can re-pay our parents the site pr

It's impossible to even guess how much you might qualify for without know how much is owing on your boyfriends existing mortgage, do you have kids, any other loans, how much is his mortgage repayment per month. is the house rented, are you paying rent, how much do you save per month etc etc..

To answer the second part of your query the most you will be able to borrow initially will be 100% of the construction cost of the new build and the banks will be unlikely to entertain an equity release to repay a 'loan' from your parents.

sunshinery

killers1 wrote: »

It's impossible to even guess how much you might qualify for without know how much is owing on your boyfriends existing mortgage, do you have kids, any other loans, how much is his mortgage repayment per month. is the house rented, are you paying rent, how much do you save per month etc etc..

To answer the second part of your query the most you will be able to borrow initially will be 100% of the construction cost of the new build and the banks will be unlikely to entertain an equity release to repay a 'loan' from your parents.

Hi

Thanks for your reply. Could I PM you the details you mentioned?

killers1

sunshinery wrote: »

Hi

Thanks for your reply. Could I PM you the details you mentioned?

Hi,

No problem at all, send me on the details and I'll run some figures for you later this evening, tks

fin78

Hi, I need some advice..

I have been approved mortgage of €140,000. I am purchasing and old house which I am going to renovate. The house has been valued at €55,000 but the owner is selling it to me for €25,000. The cost of my renovations will cost me €100,000 approx. plumbing, wiring and building work.. What way will I have to draw down the mortgage. Am hoping €120,000 will buy and completely finish the house / furnish. When house is finished it will prob be worth in the region of €170,000 much more than. Will I get the full amount from bank or how much deposit will have toput towards it. Would me Equity / input deposit be €30,000 ?

Please advise...

sheff the ref

You are probably sorted at this stage but

I have seen there on Permanent TSB website that for a self build that the bank will fund the lower of (a) 75% of the finished value or (b) 100% of the build cost

https://www.permanenttsb.ie/whatweoffer/mortgages/self-build/

I presume similar criteria would apply for your project

fin78 wrote: »

Hi, I need some advice..

I have been approved mortgage of €140,000. I am purchasing and old house which I am going to renovate. The house has been valued at €55,000 but the owner is selling it to me for €25,000. The cost of my renovations will cost me €100,000 approx. plumbing, wiring and building work.. What way will I have to draw down the mortgage. Am hoping €120,000 will buy and completely finish the house / furnish. When house is finished it will prob be worth in the region of €170,000 much more than. Will I get the full amount from bank or how much deposit will have toput towards it. Would me Equity / input deposit be €30,000 ?

Please advise...

granddesigns

Hi need some advice.

Looking to purchase site at 149,000 and cost to build is 144,000 (builders finish) for 1100 sq foot bungalow.

Earnings: 45000 (PS) and 68000(Private)

Savings: 80,000

Putting away: 1866 a month jointly

Rent: 700 a month

No debt/loans

Could we get a moortgage and how much of a deposit would we need for the above project. Hoping not to put the full 80k towards the deposit.

Thanks

Trish56

granddesigns,
You will have no problem getting a mortgage on those figures and can borrow up to 92% depending on lender.

Are you using a builder and fixed price contract. Mortgage can be drawn down in stages and certified by a qualified Architect/Engineer who must supervise the construction. No need to use all your savings however the lower your loan to value the lower your interest rate so you need to take that into consideration.
Best of luck

granddesigns wrote: »

Hi need some advice.

Looking to purchase site at 149,000 and cost to build is 144,000 (builders finish) for 1100 sq foot bungalow.

Earnings: 45000 (PS) and 68000(Private)

Savings: 80,000

Putting away: 1866 a month jointly

Rent: 700 a month

No debt/loans

Could we get a moortgage and how much of a deposit would we need for the above project. Hoping not to put the full 80k towards the deposit.

Thanks

dec1892

Hi there

Looking for some advice.

I'm in the process of applying for a self build mortgage from AIB. Have sufficient cash to buy the site (currently in a bidding war for the site which will cost €200k).....keen to have mortgage approval before finalising purchase of the site though

I've submitted my mortgage application with all statements, employment details etc but AIB are looking for a building costings estimate even though I'll be paying for the site in cash.

My question is whether builders charge for providing a building costing a estimate?
I need this ASAP so wondering what the turnaround time from a builder is likely to be?

Thanks

Trish56

Hi dec1892,
If you are applying for a self build mortgage AIB will require a qualified Architect/Engineer to supervise the construction and they have a standard form to be completed by whoever is supervising which includes detailed costing's. So to answer your question if a builder is going to build the house you need a fixed price contract and if building by direct labour you need costing's completed on their standard form by your supervising Architect/Engineer.

Best of luck.
Trish

dec1892 wrote: »

Hi there

Looking for some advice.

I'm in the process of applying for a self build mortgage from AIB. Have sufficient cash to buy the site (currently in a bidding war for the site which will cost €200k).....keen to have mortgage approval before finalising purchase of the site though

I've submitted my mortgage application with all statements, employment details etc but AIB are looking for a building costings estimate even though I'll be paying for the site in cash.

My question is whether builders charge for providing a building costing a estimate?
I need this ASAP so wondering what the turnaround time from a builder is likely to be?

Thanks

dec1892

Trish56 wrote: »

Hi dec1892,
If you are applying for a self build mortgage AIB will require a qualified Architect/Engineer to supervise the construction and they have a standard form to be completed by whoever is supervising which includes detailed costing's. So to answer your question if a builder is going to build the house you need a fixed price contract and if building by direct labour you need costing's completed on their standard form by your supervising Architect/Engineer.

Best of luck.
Trish

Thanks Trish.
I'm planning on going for a builder to supervise it and so a fixed price contract.

Will a builder complete a building costings template form free of charge I presume?

Trish56

dec1982
Do you mean you are going to get a builder to build the house as you mentioned to supervise it. If so the builder will issue you with a fixed price contract and the bank will still require a qualified Architect/Engineer to supervise construction and certify stage payments. Your Architect/Engineer will complete the form inserting the contract price and then will add in any additional extra's not included in the contract by the builder such as fitted kitchen, fireplaces, footpath, tarmacadam etc.

The Architect/Engineer will give you a price to supervise and certify stage payments so he will fill out form as part of the price.

You need to ask AIB for this form.

Hope this helps.
Trish

dec1892

Trish56 wrote: »

dec1982
Do you mean you are going to get a builder to build the house as you mentioned to supervise it. If so the builder will issue you with a fixed price contract and the bank will still require a qualified Architect/Engineer to supervise construction and certify stage payments. Your Architect/Engineer will complete the form inserting the contract price and then will add in any additional extra's not included in the contract by the builder such as fitted kitchen, fireplaces, footpath, tarmacadam etc.

The Architect/Engineer will give you a price to supervise and certify stage payments so he will fill out form as part of the price.

You need to ask AIB for this form.

Hope this helps.
Trish

Yup, a builder to build the house and supervise the project for a fixed contract price.

But I haven't even gone approaching any builders yet as I haven't even bought the site as yet (in the bidding process for it now)
AIB want me to have a building costing template completed now by a builder as part of the mortgage application so to stack it up against the loan amount I am requesting.
I'm just a bit unsure as to how to go about getting this template completed and signed by a builder.....do I just approach any builder I suppose requesting them to cost it?

currins_02

Hi folks,

Some great stuff here. Can anyone give any direction on my situation.

Earning approx €38k PA and wife earns approx €25k. Car loan of €340 PM, current mortgage of just sub €700 pm (€115k left and 21 years left), no other debt. All payments up to date and have never been late/missed/reduced. Approximately €5k in savings at present and 2 small kids. No card debts or anything like that.

Basically a benevolent family member is looking to dispose of a site (approx 3/4 acre) in a very scenic rural area, close to beaches, spectacular views etc. Site is less than half a mile from wife's parents and similar distance to potential kids school (first child to start in September this year). Have had informal talks with reputable local architect and planning consultant and both confident planning can be achieved. Spoken to a local builder and subject to final spec confident a build cost of €120-€150k would cover everything we have on our "wish list".

Our current 4 bed semi d is in slight (relative to other people elsewhere in country) negative equity, cost €165k originally, €115k left on mortgage as of last week, adjoining house sold last November for €85k. Healthy rental market locally at the minute and one letting agent willing to give written confirmation that would take immediately and realise rent of €650-€800pm subject to certain terms being agreed.

The story on this site is we have been offered "first refusal", it is of no cost beyond legal fees/capital gains for transfer and is in effect being "gifted". The transfer is subject to using the site, should we have no plan to use the site in the short term it will be given to the next relative in the line subject to the same terms and so on. We have been given until May to decide if we wish to have the site or not.

We did not expect or could not have wished for this opportunity and as such we have been caught on the hop. Given the negative equity situation I would like to retain existing house, rent it until values return or whatever and build new house as family home. Not sure if that is practical based on our current situation. Finding it hard to get guidance. Spoke to a bank and a building society and both wanted planning (outline/full) etc to be in train or through before they could even look at applications but a) we haven't the time or we could lose the chance of the site and b) we don't want to commit a fortune of money to the planning/design/costing process to be running up a blind alley.

Has anyone any advice or experience in such a situation. Is it worth pursuing? Are we wasting our time? Unfortunately time is ticking, obviously build could not begin until all the ducks were in a row in terms of planning, finance, contracts etc but the site would only be gifted on the basis we would build on it over the next couple of years at the longest. We never foresaw having this chance and as such were somewhat ill prepared mentally and financially when chance came up but it would be a shared dream to build a rural home in an area we love (both originally from that are, both originally grew up in a rural area and until this came up were living in an urban situation happily resigned to that being our lot for foreseeable future!)

Trish56

In order to give you an idea if this will be a runner or not you need to provide more information such as your ages and whether you work in private or public sector. Estimated value of site you are being gifted, balance owed on car loan, interest rate you are paying on your existing mortgage, estimated value of your home, sq. footage of proposed build and how much you save each month.

currins_02

Trish56 wrote: »

In order to give you an idea if this will be a runner or not you need to provide more information such as your ages and whether you work in private or public sector. Estimated value of site you are being gifted, balance owed on car loan, interest rate you are paying on your existing mortgage, estimated value of your home, sq. footage of proposed build and how much you save each month.

Hi there,

Thanks for taking interest

I'm 35, wife is 32.

Both employed in private sector (neither ever been unemployed, I'm with current employer over 5 years, wife with current employer over 11 years)

Site, as is, without planning worth approximately €35,000, with planning worth €50,000 approx

Approx €12k (35 payments) left of car loan (13 months into 4 year loan)

I'll have to double check interest rate but it's a standard variable rate mortgage with EBS.

I know of a neighbour who has had house similar to my own valued at €120k but being honest the other half of mine (being a semi d) sold in November 2014 for €85k.

We're probably looking at something around 1300 - 1400 sq ft with a detached garage (but that is all subject to actually sitting down with an architect and going through planning process).

Religiously save €200pm by DD and depending how things go that can go up to €400pm sporadically.

We've struggled through the recession but never missed a payment on anything, avoided card debt, bills all up to date, had an annual holiday, self financed a large wedding in the last year etc, minimum DD savings always paid, added to when possible.

As I say, had this been a pre-planned thing we would have been positioning ourselves better but it has come out of no where. For various reasons the current site owner wants to get site off his hands before this year end. He is comfortable financially and it borders wider family lands/houses so wants nothing for it but someone in his extended family (he is a bachelor, childless and in late 50's) to use it. In an old fashioned way he doesn't want to have someone from outside his family get it so not for open sale and wants to be sure whoever he gives it to will, in short to medium term anyway, use it themselves as opposed to sell it on or anything.



Strange situation but life does throw up an odd curveball. Would love to pursue this but reality & practicality may rule things out.

sheff the ref

With €5,000 in savings, you should be able to negotiate a few quid to buy the site and sit on it. Then you can plan towards developing in future years. However you may feel the need to sort planning now but that wont cost a lot.

If planning is about to expire in a few years, you can build the walls to roof level and let it sit there for as long as you need. However the Council Charges are heavy enough. Meanwhile the property market may have recovered and you may be able to offload your own

currins_02 wrote: »

Hi folks,

Some great stuff here. Can anyone give any direction on my situation.

Earning approx €38k PA and wife earns approx €25k. Car loan of €340 PM, current mortgage of just sub €700 pm (€115k left and 21 years left), no other debt. All payments up to date and have never been late/missed/reduced. Approximately €5k in savings at present and 2 small kids. No card debts or anything like that.

Basically a benevolent family member is looking to dispose of a site (approx 3/4 acre) in a very scenic rural area, close to beaches, spectacular views etc. Site is less than half a mile from wife's parents and similar distance to potential kids school (first child to start in September this year). Have had informal talks with reputable local architect and planning consultant and both confident planning can be achieved. Spoken to a local builder and subject to final spec confident a build cost of €120-€150k would cover everything we have on our "wish list".

Our current 4 bed semi d is in slight (relative to other people elsewhere in country) negative equity, cost €165k originally, €115k left on mortgage as of last week, adjoining house sold last November for €85k. Healthy rental market locally at the minute and one letting agent willing to give written confirmation that would take immediately and realise rent of €650-€800pm subject to certain terms being agreed.

The story on this site is we have been offered "first refusal", it is of no cost beyond legal fees/capital gains for transfer and is in effect being "gifted". The transfer is subject to using the site, should we have no plan to use the site in the short term it will be given to the next relative in the line subject to the same terms and so on. We have been given until May to decide if we wish to have the site or not.

We did not expect or could not have wished for this opportunity and as such we have been caught on the hop. Given the negative equity situation I would like to retain existing house, rent it until values return or whatever and build new house as family home. Not sure if that is practical based on our current situation. Finding it hard to get guidance. Spoke to a bank and a building society and both wanted planning (outline/full) etc to be in train or through before they could even look at applications but a) we haven't the time or we could lose the chance of the site and b) we don't want to commit a fortune of money to the planning/design/costing process to be running up a blind alley.

Has anyone any advice or experience in such a situation. Is it worth pursuing? Are we wasting our time? Unfortunately time is ticking, obviously build could not begin until all the ducks were in a row in terms of planning, finance, contracts etc but the site would only be gifted on the basis we would build on it over the next couple of years at the longest. We never foresaw having this chance and as such were somewhat ill prepared mentally and financially when chance came up but it would be a shared dream to build a rural home in an area we love (both originally from that are, both originally grew up in a rural area and until this came up were living in an urban situation happily resigned to that being our lot for foreseeable future!)

currins_02

Thanks Sheff, that was Plan A when this came on the radar a few weeks back first. When that was put to the owner of the site (we said, yeah we'll take it, get ourselves sorted - probably take a year or 2 to get financially where we would like to be - and look at it then - he basically said, well I'm gonna offer it to the next on my list and if they want to build fairly immediately they can have it) There is no option to get him to take money for it. He has no interest in that ( quite comfortable that way ) and would, I suspect be insulted by the inference. In the past he gifted other family members, including my parents in law, sites on various parts of his land and while quite generous in that sense he is quite stubborn with terms on it (for instance gave another nephew a site a couple of years back but a condition was he could only build a bungalow or dormer but not a 2 storey).

This bit of land is separate to his main holding, of no use to him agriculturally and sandwiched between a main road, a related neighbours field and another cousins private house. For certain reasons (which I won't go into here) he wants this site to be out of his ownership by the end of the year, he could put it on open market if he wanted to sell it and it would be snapped up at probably in excess of €50k with outline planning.

I've never won as much as a box of sweets so it's highly unusual for such a windfall. My wife is the same. It would be a pity to not explore the options but given our current situation, the general economy etc it may not be an option for us right now.

As they say, nothing in life's for free and unfortunately in this case the price is a need to develop the site ASAP which we simply may (or may not) be in a position to do.

I appreciate the comments though.

sheff the ref

In that case grab the free site while you still can, use your €5000 to get credit union cash to build up to roof level. That will buy you time. You may need to eliminate the car loan and settle for an older car for a period, as that would eliminate a monthly payment, which in effect would form a significant portion of a mortgage payment.

currins_02 wrote: »

Thanks Sheff, that was Plan A when this came on the radar a few weeks back first. When that was put to the owner of the site (we said, yeah we'll take it, get ourselves sorted - probably take a year or 2 to get financially where we would like to be - and look at it then - he basically said, well I'm gonna offer it to the next on my list and if they want to build fairly immediately they can have it) There is no option to get him to take money for it. He has no interest in that ( quite comfortable that way ) and would, I suspect be insulted by the inference. In the past he gifted other family members, including my parents in law, sites on various parts of his land and while quite generous in that sense he is quite stubborn with terms on it (for instance gave another nephew a site a couple of years back but a condition was he could only build a bungalow or dormer but not a 2 storey).

This bit of land is separate to his main holding, of no use to him agriculturally and sandwiched between a main road, a related neighbours field and another cousins private house. For certain reasons (which I won't go into here) he wants this site to be out of his ownership by the end of the year, he could put it on open market if he wanted to sell it and it would be snapped up at probably in excess of €50k with outline planning.

I've never won as much as a box of sweets so it's highly unusual for such a windfall. My wife is the same. It would be a pity to not explore the options but given our current situation, the general economy etc it may not be an option for us right now.

As they say, nothing in life's for free and unfortunately in this case the price is a need to develop the site ASAP which we simply may (or may not) be in a position to do.

I appreciate the comments though.

Trish56

Hi again,
I have put your figures into a calculator and it certainly looks doable. I did not check with you if you pay childcare so need to know and also if you have credit cards and if so what are the credit limits.

Also what area is both your private dwelling and the proposed site.

I think the relative needs to understand that you cannot build a house on the site unless you have planning permission first which will take approx. 4 months.

currins_02

Thanks Sheff, may be an option ok, actually currently awaiting approval for a credit union account (never had one) so may chat to them in that regard.

To be honest we spent a big chunk of savings on our wedding/honeymoon etc last year and the car is the most modern/nicest I've ever owned. If we had even an inkling this chance was coming down the line, however far down the line, we may have structured some wedding spending differently and gone for a lesser car but as they say, "if I knew then what I know now!"

currins_02

Trish56 wrote: »

Hi again,
I have put your figures into a calculator and it certainly looks doable. I did not check with you if you pay childcare so need to know and also if you have credit cards and if so what are the credit limits.

Also what area is both your private dwelling and the proposed site.

I think the relative needs to understand that you cannot build a house on the site unless you have planning permission first which will take approx. 4 months.

Hi Trish, I'm getting butterflies when I see your response.

2 kids but thanks to 2 excellent Grannies no childcare costs as such (we do buy them an occasional meal/fuel voucher).

We have an MBNA gold card with €4,000 limit but balance is a consistent €0.

Both site and my current house are on Inishowen Peninsula in Co Donegal.

Yes, the relative understands that. I've never been through or looked at the process before but what has been suggested is that we sign preliminary contracts subject to obtaining planning. Title stays with him in that period, on issue of planning (4-6months we were advised by planning consultant) conveyancing goes through and site becomes ours (we have to pay legal fees and as it's a "gift" there will be capital gains tax), we start building pretty immediately then. That process was suggested by an auctioneer friend of the relative. The land would hopefully be out of his name by year end (so he's happy) and we should have new house built by end 2016 (so he and we are all happy!).

Any advice on what or how to do this is greatly appreciated.

sheff the ref

Banks will now assess your ability to pay two mortgages at a stressed high level of interest before they commit to lending a mortgage. Rental income may not be taken into account as their argument may be that it may not always be possible to rent the property. You could find yourself needing to prove you can shell out anything up to 2,000 a month on both mortgages if the need arises.

Trish56

You have two options here : 1) Apply to EBS for a Negative Equity Mortgage this will entail you selling your current home and carrying the negative equity part approx. 25k to the new mortgage. Your income should qualify for a mortgage in excess of 200k. If you are applying for a self build mortgage you will need to provide planning permission so it might be advisable to initially apply for 'an approval in principle' without a property. The AIP will last for 6 months. In the meantime get plans drawn up and apply for planning permission and once received advice EBS you got a gift of a site and are building. There will be conditions to qualify for a negative equity mortgage. You can borrow up to 175% of the purchase price subject to income.

2nd Option. Retain your home and rent out...Lender wont be too keen on this as you are not an experienced Landlord and they will more than likely want to see the property let before you apply for a mortgage. This means that you will have to sell and find alternative accommodation while building.

Negatives would be savings may be an issue as 5k wont pay for an awful lot up front to draw up plans, apply for planning permission and start the build. Is it possible to get a gift from parents to get you started. You should be able to borrow up to 100% of the construction costs however same will have to be drawn in stages.

You need to have a chat with your Mortgage Advisor in EBS or find yourself a good broker.

Good Luck
Trish

rodge123

killers1 wrote: »

Hi,

No problem at all, send me on the details and I'll run some figures for you later this evening, tks

Hi Killers

Another query for you if you don't mind? (You should start charging!)

Myself & girlfriend recently purchase an old cottage on 0.6 acres for 150k cash.
It was the only way to get around local needs criteria to build a new one off house.

We done some emergency works on the cheap and are now living in it - it's very comfortable.

We got planning permission to build a new house behind it. There is a condition attached that the cottage must be knocked on completion of new build.

We are estimating about €350k for the house build alone.
Another 30k for loose furniture/applicances/etc.
And 30k for fees.
We have already spend about 10k on fees (Architect, Engineer, Etc).

We have savings of 40k

Questions:
- Will the bank only loan us money for the 350k? I.e. will we have to use our own saving for furnishings and fees?
- Will they include the 10k fees we have already spend in any calculations they make? (Will probaly have spend another 10k in fees before any mortgage drawdown)
- What do you think is our best funding option to take when considering current LTV rates?

dizainss

Hi all
I need an advise. I have very tricky situation.
I have site (bought for 20k 6month ago) PP due in May 2017. Building in progress.
Foundation and block-works done. Now I'm running out of money. Maybe will be able to put some rafters on the roof before I completely stuck. So need to apply for self-build mortgage.
I have 35k gross (10years in one company) but its only for 3 months now.
Spouse is housewife and self employer (she has lifestyle business without any real income)
So we decided to apply on my own without her.

We have 3kids 17-9-6yo (but in revenue.ie I have only one registered, I think because we are not married) Im step father for 17yo boy. he is doing leaving cert and going to university in 2017. 2 other kids are mine ))

So 1st question how many dependents formally I have

Then site is 20k I spent so far around 40k and I have 2k Savings in Credit Union
My Bank A/C is clean only for 3 months now with all essential things like 35k gross(weekly)
no Irregular charges (there were few before in September)
Rent 550monthly (again only for 3months now, paid cash before for 7years)
€100 weekly saving to CU(for last 6years).
I have no loans. only -€300 on Credit Card.
All payments such ESB, broadband, Netflix etc are paid from my bank A/C.

So I want borrow max 120k. I need to get mortgage ASAP (due pp till 05/2017)
2: question: am I qualify for a mortgage, what are the chances
3: can I borrow 120k?? (I know its 35k x 3.5 = 122.5k, but what about dependents?)
4: can I apply with only 3month clean history of my bank A/C?
5: How long it would take to apply and get decision from the bank?
6: On what stage and what is the procedure to apply for new hose buyer/self-build rebate (new thing in 2017 budget)

House valuation: site+house will be about 200-250k.
I bought a site for 20k, but now nearest price you can find on daft.ie is 40-50k
I have reputable architect and 1 builder - self-employer who build the hose.

listermint

dizainss wrote: »

Hi all
I need an advise. I have very tricky situation.
I have site (bought for 20k 6month ago) PP due in May 2017. Building in progress.
Foundation and block-works done. Now I'm running out of money. Maybe will be able to put some rafters on the roof before I completely stuck. So need to apply for self-build mortgage.
I have 35k gross (10years in one company) but its only for 3 months now.
Spouse is housewife and self employer (she has lifestyle business without any real income)
So we decided to apply on my own without her.

We have 3kids 17-9-6yo (but in revenue.ie I have only one registered, I think because we are not married) Im step father for 17yo boy. he is doing leaving cert and going to university in 2017. 2 other kids are mine ))

So 1st question how many dependents formally I have

Then site is 20k I spent so far around 40k and I have 2k Savings in Credit Union
My Bank A/C in clean only for 3 months now with all essential things like 35k gross(weekly)
no Irregular charges (there were few before in September)
Rent 550monthly (again only for 3months now, paid cash before for 7years)
€100 weekly saving to CU(for last 6years).
I have no loans. -€300 on Credit Card.
All payments such ESB, broadband, Netflix etc going form my banks A/C.

So I want borrow max 120k. I need to get mortgage ASAP (due pp to 05/2017)
2: question: am I qualify for a mortgage, what are the chances
3: can I borrow 120k?? (I know its 35k x 3.5 = 122.5k, but what about dependents?)
4: can I apply with only 3month clean history of my bank A/C?
5: How long it would take to apply and get decision from the bank?

House valuation: site+house will be about 200-250k.
I bought a site for 20k, but now nearest price you can find on daft.ie is 40-50k
I have reputable architect and 1 builder - self-employer who build the hose.

Usually they require 6 months minimum for history checks they need to see you didn't just come out of no where.

You should really speak to a broker that has background in self build.

sheff the ref

Your biggest problem will be getting the Bank to lend you as little as 120k. They will want you to borrow more and therefore need to qualify to borrow far more.

They put set prices on every job that has to be done to the house and even though their valuations may be in excess of what the work will really cost, it is their valuation of the work that counts and if you want to borrow from them, you must play by their rules

Life would be great if you could go off and borrow 80 or 90 or 120k and work away off that, but the banks wont entertain that

dizainss wrote: »

Hi all
I need an advise. I have very tricky situation.
I have site (bought for 20k 6month ago) PP due in May 2017. Building in progress.
Foundation and block-works done. Now I'm running out of money. Maybe will be able to put some rafters on the roof before I completely stuck. So need to apply for self-build mortgage.
I have 35k gross (10years in one company) but its only for 3 months now.
Spouse is housewife and self employer (she has lifestyle business without any real income)
So we decided to apply on my own without her.

We have 3kids 17-9-6yo (but in revenue.ie I have only one registered, I think because we are not married) Im step father for 17yo boy. he is doing leaving cert and going to university in 2017. 2 other kids are mine ))

So 1st question how many dependents formally I have

Then site is 20k I spent so far around 40k and I have 2k Savings in Credit Union
My Bank A/C is clean only for 3 months now with all essential things like 35k gross(weekly)
no Irregular charges (there were few before in September)
Rent 550monthly (again only for 3months now, paid cash before for 7years)
€100 weekly saving to CU(for last 6years).
I have no loans. only -€300 on Credit Card.
All payments such ESB, broadband, Netflix etc are paid from my bank A/C.

So I want borrow max 120k. I need to get mortgage ASAP (due pp till 05/2017)
2: question: am I qualify for a mortgage, what are the chances
3: can I borrow 120k?? (I know its 35k x 3.5 = 122.5k, but what about dependents?)
4: can I apply with only 3month clean history of my bank A/C?
5: How long it would take to apply and get decision from the bank?
6: On what stage and what is the procedure to apply for new hose buyer/self-build rebate (new thing in 2017 budget)

House valuation: site+house will be about 200-250k.
I bought a site for 20k, but now nearest price you can find on daft.ie is 40-50k
I have reputable architect and 1 builder - self-employer who build the hose.

sheff the ref

Some banks have an issue with a credit card limit, for applications even if the balance on the card is reduced to zero. Their point is that you can potentially draw another x amount on top of borrowings and therefore increase your exposure. Therefore you are better off cancelling credit cards

Trish56

You most definitely have a very trick situation:
Firstly you should not commence construction of a dwelling until you receive full planning permission which you say is not due until May 2017.

How can you comply with planning permission when you don't even have the conditions.

You mention you have a reputable Architect...how come he allowed you start building without planning permission?? Is he supervising the construction.

You mention a spouse but yet say you are not married ?? If you are married then you have to apply for a mortgage in your joint names as it is the family home.
For a married man with a wife and 3 dependents you have absolutely no hope of getting a mortgage on 35k gross p.a. so you can ignore the advice that the amount is too small and bank will want to lend you more.

Lots of inconsistencies in your post....maybe you're having a laugh

dizainss

Hi Trish56,
Thanks for you reply
I have PP (Planning Status: APPLICATION FINALIZED)
The permission shall expire on the 15/04/2017
I spent 80k so far and roof will be on by end of February.
and Architect got all possible awards in the Industry
FAMILY STATUS
We are not married. And I have only one children registered in revenue, so of course I pay nearly for everything and for everybody in our family but still formally I have only one children not three
so its not a laugh
Can`t wait your reply Trish56