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Self Build - Mortgage

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  • 10-01-2013 12:59pm
    #1
    joe316
    Registered Users Posts: 1,598 ✭✭✭


    Hi all,

    Wondering could you give me some advice, myself and my wife are planning on building a home in the next 2/3 years and I just wanted to explain our situaition.

    My wife currently owns 50% of the home we are living in (with her brother inherited from her mother's passing), worth about 120k. We have saving of about 15k (planning to really step this up over the next while). I was hoping that the banks would use the collateral of our current home towards the mortgage. It will be sold when the house is built and will pay off a chunk of the mortgage straight away. I know that they wont count it completely but I was hoping that they would count it a bit.

    The site costs would be around 60k and the house build between 230k and 250k.

    My salary is 70k, she's currently on maternity leave at the moment but might go back to part time work in about 6/12 months (worth about 8/10k).

    Thanks for any advice, will also go to a broker but just wanted to see if there was any opinion here.


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    #2
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    joe316 wrote: »
    Hi all,

    Wondering could you give me some advice, myself and my wife are planning on building a home in the next 2/3 years and I just wanted to explain our situaition.

    My wife currently owns 50% of the home we are living in (with her brother inherited from her mother's passing), worth about 120k. We have saving of about 15k (planning to really step this up over the next while). I was hoping that the banks would use the collateral of our current home towards the mortgage. It will be sold when the house is built and will pay off a chunk of the mortgage straight away. I know that they wont count it completely but I was hoping that they would count it a bit.

    The site costs would be around 60k and the house build between 230k and 250k.

    My salary is 70k, she's currently on maternity leave at the moment but might go back to part time work in about 6/12 months (worth about 8/10k).

    Thanks for any advice, will also go to a broker but just wanted to see if there was any opinion here.

    There's a lot of variables to this... As your wife's current house is also owned by her brother the bank won't be interested in taking it as additional security for the new mortgage as the brother would also need to be party to the new property. They could look into doing an equity release for €60k (I presume you're looking for funds to buy the site?) or alternatively your wife's brother could look into taking out a mortgage to purchase her share of the property giving you enough money to buy the site and he could then sell the property further down the road to realise his share... You've a few different options, it's really a case of finding the one which suits all 3 of you..


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