self Build Mortgage advice

SelfBuilding

can anyone give me a little bit of quick guidance on a self build mortgage.

All i need to know is am i heading in the right direction, and is there more i need to do and would i even qualify for a mortgage of this size. Trying to get an answer from the bank from the banks on a simple query is very challenging, it's not like i can legally hold them to any of it....anyway -

Joint application, one earner - €60,414, PAYE employee. (38 years old) married, 2 kids, (1 & 3)

Fully detailed contractors finish €210k (inc Vat).

The site was gifted and we have full planning.

Credit card debt of under €400 + paying off a consolidation loan with €5k remaining to pay off at €300 per month

No other debt or loan obligations

4 months saving history at €1000 per month + approx €3k with other savings (Credit Union)

Cash gift of around €15,000.

what i would really like to know is what would be the max mortgage i would be eligible for?

And when should i look to apply, 6 months of savings, 12 months etc.??

Anything else i need to be doing to ensure i have no issues in application?

appreciate any guidance you can offer. thanks.

SBarrett

Where you are going to struggle is net disposable income. With 2 kids, you will need to have €2,550 in income after the mortgage & loan is paid.

The stress tested mortgage repayments for a 27 year mortgage is €1,375. So you'll need €3,925 a month to meet the requirements. Your net income comes in about €3,479.

Clear the loan, and you should get €173,000. Keep the loan and you'll get €127,000.




Steven

SelfBuilding

Thanks for that, I've a lot of work to do so. Looks like I'm going the proper self build route..

SBarrett

Your welcome.

Just save, save, save. And see if there's work you can do yourself or get a lot cheaper.

fits

Are the new regulations going to affect self builds the same way. I would own the site plus a few acres.

SBarrett

The consultation paper does not mention self builds specifically. Currently, if you own the site, you can borrow 100% of the build cost.

A fully built house on land should always have a ltv of less than 80%, so I don't see how the LTV would effect self builds at all.

The multiple of salary will apply though, using 3.5 times salary.

There are allowances to go above both though. Summary of the consultation paper is below.

Steven

Toots

Folks just a reminder of the rules contained in the forum charter:

Don't Solicit Business.
This is a bannable offence. Trying to solicit business or get free advertising on this board will result in you being banned from this board permenantly. Multiple accounts from the same person doing this may result in the admins banning your IP from this site. You don't want that.

No Commercial Entities.
People may post to this board as private entities. If you want to advertise then contact sales@boards.ie to discuss it further. Any accounts created for the sole purpose of advertising a company or entity will be banned from this board permanently. Posting here as a professional in the industry (past or present) is fine.

No Advertising of Commercial Entities.
That's pretty self explanatory - but to be sure, you cannot use this forum to advertise products and services. If you wish to advertise, contact sales@boards.ie. NB: Weblinks to articles, information sites and free sites are fine. It is only blatant advertising of commercial entities that we will be removing.

If you are unsure if something you wish to post would be considered advertising, please PM either myself or Buffybot to check before you post.