Selfbuild mortgage

Msrob

Hi just wondering if anyone thinks we wud have a chance in getting a mortgage. I am a sahm and dp works full time on €35k wage. We were gifted a site so we reckon we need 130k for the house. We rent at the moment and have a car loan of 2900 and another loan that we will clear this wk. what do u think our chances are

Kenno90

What is the cost of the rent?

How long are you willing to have the mortgage for ? 20/25/30 Years?

Do you have any savings that can be applied to this build?

Honestly, i doubt you will get the mortgage approval for 130k with a total income of 35k especially since you have kids (sahm - Stay at Home Mother??).

Msrob

Yeah sorry we have 2kids, no savings rent is €500per month

Msrob

Looking at 30 yr

Msrob

Dp dad has offered to gift us a deposit wud this help us?

Kenno90

Msrob wrote: »

Yeah sorry we have 2kids, no savings rent is €500per month

Then i don't think you'll get approval for anything near that amount. I entered some figures here https://mortgage.aib.ie/ based on what you provided and it wouldn't give me approval.

Having saving is really important for a mortgage

Kenno90

Msrob wrote: »

Dp dad has offered to gift us a deposit wud this help us?

Possibly, for a owner occupied mortgage you'd need 8% deposit. So 8% of 135k is around 11k

But i don't know if a building mortgage would follow the same rules

Msrob

Kenno90 wrote: »

Possibly, for a owner occupied mortgage you'd need 8% deposit. So 8% of 135k is around 11k

But i don't know if a building mortgage would follow the same rules

Ok thanks for the info we hope to start to save a little maybe €50 and apply just after summer dp is a builder so can do most of the work so the 135 is a guesstimate wud love to get it under 100k mark we are re-doing our plans we are trying to come in at 1800sq ft bungalow

Kenno90

Msrob wrote: »

Ok thanks for the info we hope to start to save a little maybe €50 and apply just after summer dp is a builder so can do most of the work so the 135 is a guesstimate wud love to get it under 100k mark we are re-doing our plans we are trying to come in at 1800sq ft bungalow

Thats great. You'll save a ton on labour costs. A mortage under 100k would cost you about 620 a month for 20 years.

With savings/gifts from family plus the fact he is a builder could get that. Good luck

tvc15

Msrob wrote: »

Ok thanks for the info we hope to start to save a little maybe €50 and apply just after summer dp is a builder so can do most of the work so the 135 is a guesstimate wud love to get it under 100k mark we are re-doing our plans we are trying to come in at 1800sq ft bungalow

Not sure what a dp is or a sahm, but you should ask on the accommodation and property forum (without the abbreviations) as there are some good mortgage brokers there, one user (killers1) did our mortgage and will be able to tell you what you need to do to get ready to apply, if you have no savings and start at €50 per week, that's only €2600 in a year, not enough for 8% deposit

Msrob

Kenno90 wrote: »

Thats great. You'll save a ton on labour costs. A mortage under 100k would cost you about 620 a month for 20 years.

With savings/gifts from family plus the fact he is a builder could get that. Good luck

Ok great thanks for the info

phormium

Just listening to Joe Duffy and there are some new regulations coming in on the 1st of March which Joe's listeners say will end selfbuild/direct labour jobs. Don't know whether they are right or not but worth checking on before you try that route.

D3PO

op please stop with the text speak / short hand.

If you ahve no savings forget about it you ahve no chance of getting a mortgage even if your partners dad gifts you the deposit. Banks want to see that your financially capable of servicing a mortgage and if you cant save then you are showing yourself off to be a bad risk in their eyes.

Add into the equation that your partner is a buildier and banks really are not going to entertain you at all given how volatile an industry that is atm.

Best thing you can do is sit down figure out your budget and get yourself into a position where 1) you have no loans and 2) your saving a regular amount every month.

Then in 6 months / 12 months time things may look a lot more favourably for you.

Right now honestly you have no chance.

Msrob

D3PO wrote: »

op please stop with the text speak / short hand.

If you ahve no savings forget about it you ahve no chance of getting a mortgage even if your partners dad gifts you the deposit. Banks want to see that your financially capable of servicing a mortgage and if you cant save then you are showing yourself off to be a bad risk in their eyes.

Add into the equation that your partner is a buildier and banks really are not going to entertain you at all given how volatile an industry that is atm.

Best thing you can do is sit down figure out your budget and get yourself into a position where 1) you have no loans and 2) your saving a regular amount every month.

Then in 6 months / 12 months time things may look a lot more favourably for you.

Right now honestly you have no chance.

Sorry my partner used to be a builder now works with a company doing other work. Sorry about short hand text I taught people used them in forums such as this. Won't use them again.

Msrob

phormium wrote: »

Just listening to Joe Duffy and there are some new regulations coming in on the 1st of March which Joe's listeners say will end selfbuild/direct labour jobs. Don't know whether they are right or not but worth checking on before you try that route.

Yes we have just been told this feckin typical were going to have a chat with our architect this evening

marathonic

I know of a couple where the husband is (was) a property developer. They have estimated a cost for the build and submitted an application for this amount. The bank refused the mortgage based on their opinion that the house couldn't be built for this. The banks are afraid of having yet another batch of partially completed houses on their books and, therefore, will not entertain an application unless your estimated build costs, together with contingency fund, matches with their estimates.

I've read that the new regulations can add about €10 per square foot to the cost of a build and am pretty sure the bank will incorporate this into their estimates.

Basically, you will save on labour but, as was the case with the friends of mine, the bank will not put any value on this. You will be penalised for not looking to borrow enough. In the case of my friends, they cannot qualify for the amount the banks think they need to complete the house.

Junadl

Hi just wondering what happened in the end..