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Self build mortgage on gifted land ...deposit amount?

  • 06-02-2016 8:07pm
    #1
    Mountain girl
    Registered Users Posts: 30 ✭


    We have been gifted a site for a house on our parents land in Dublin and want to build a house. The land is valued at 150k will banks allow that as collateral against the loan or do we still have to pay deposit?


Comments

  • #2
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    If you only need finance to build on the land, then the lenders will look to see if you meet their criteria to qualify for the loan amount you require. As you already have the site which has been gifted to you then it should strengthen your application.
    Do you have planning permission yet?


  • #3
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    If you only need finance to build on the land, then the lenders will look to see if you meet their criteria to qualify for the loan amount you require. As you already have the site which has been gifted to you then it should strengthen your application.
    Do you have planning permission yet?


  • #4
    fits
    Registered Users, Registered Users 2 Posts: 13,586 ✭✭✭✭fits


    You will need to show a 10% deposit amount if you are a first time owner. At least thats what I was told last week in BOI. The site doesnt count towards it anymore.


  • #5
    Gest
    Closed Accounts Posts: 113 ✭✭Gest


    fits wrote: »
    You will need to show a 10% deposit amount if you are a first time owner. At least thats what I was told last week in BOI. The site doesnt count towards it anymore.

    Is this for every bank?

    I will be looking for a mortgage to build also on a gifted site. Will I need 20% deposit as I am not a first time owner?


  • #6
    fits
    Registered Users, Registered Users 2 Posts: 13,586 ✭✭✭✭fits


    I have no idea. Probably best to ask a broker.


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  • #7
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    Mountain girl wrote: »
    We have been gifted a site for a house on our parents land in Dublin and want to build a house. The land is valued at 150k will banks allow that as collateral against the loan or do we still have to pay deposit?

    All lenders differ however yes lenders will take into consideration the value of the site and will lend 100% of the build cost however to qualify for a mortgage you must prove affordability so if your monthly stressed repayments are €1200 then you must show evidence that you have been paying this amount either in rent or rent and savings for the past 6 months. You will also need to qualify for the loan amount under the lenders and central bank criteria i.e the max you can borrow is 3.5 times joint income subject to 80% of the 1st 220k of the purchase price and 80% of the balance. You must also show that you have sufficient funds to pay for professional fees and local authority development charge.


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