Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage for self build - have we any hope?

Options
  • 08-03-2013 1:14am
    #1
    just do it
    Registered Users Posts: 5,422 ✭✭✭


    My OH and I both bought properties in '04 before we met. Unfortunately both are now in negative equity probably to the tune of €120-150k combined. They are both rented and we are making full repayments. We are looking to build hopefully starting this summer and are preparing to go to the banks to see will they lend.

    We have savings of ~€40k and looking at a build cost of ~€250k. We are currently saving €1k a month after everything else is covered.

    So folks, whats your thoughts?


Comments

  • Options
    #2
    kkelliher
    Registered Users Posts: 1,583 ✭✭✭kkelliher


    just do it wrote: »
    My OH and I both bought properties in '04 before we met. Unfortunately both are now in negative equity probably to the tune of €120-150k combined. They are both rented and we are making full repayments. We are looking to build hopefully starting this summer and are preparing to go to the banks to see will they lend.

    We have savings of ~€40k and looking at a build cost of ~€250k. We are currently saving €1k a month after everything else is covered.

    So folks, whats your thoughts?

    If you already own the land you have done chance but if not i would not fancy your chances


  • Options
    #3
    DAT64
    Registered Users Posts: 67 ✭✭DAT64


    First step is your income multiple. Multiply your combined gross salaries by roughly 4.5 that will give you a figure of a mortgage that your salaries can carry. Then deduct your combined existing mtgs, that will give you an idea of how much your are able to apply for.
    If you own the site than you can borrow 90% of the cost of construction + site value. Not including outlays and 10% contingency fund.
    Thats if you pass step one above.
    After that it comes down to affordability to carry all the mtgs.
    Hope that helps.


  • Options
    #4
    just do it
    Registered Users Posts: 5,422 ✭✭✭just do it


    DAT64 wrote: »
    First step is your income multiple. Multiply your combined gross salaries by roughly 4.5 that will give you a figure of a mortgage that your salaries can carry. Then deduct your combined existing mtgs, that will give you an idea of how much your are able to apply for.
    If you own the site than you can borrow 90% of the cost of construction + site value. Not including outlays and 10% contingency fund.
    Thats if you pass step one above.
    After that it comes down to affordability to carry all the mtgs.
    Hope that helps.

    Great stuff, on those criteria they'll lend us enough to build a dog kennel!


  • Options
    #5
    PadraigQ
    Registered Users Posts: 6 ✭PadraigQ


    just do it wrote: »
    Great stuff, on those criteria they'll lend us enough to build a dog kennel!

    choose a method that doesn't require a mortgage.. 40k is plenty for a palace. i'd PM you but don't have enough posts.


Advertisement