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Mortgage and new build

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  • 18-03-2016 10:09am
    #1
    shnethb
    Registered Users Posts: 107 ✭✭


    Hi.
    This may be the wrong place for this question but here goes.
    My Wife and I are looking into the possibility of building our own home. We have a site with PP if we want it (€25K) and about €20K saving in the bank. My question is with the private building of a home dose the mortgage include the price of the site or dose the price of the site have to be paid outside of the mortgage. We have had some discussions with the bank recently when we were thinking of buying a house but that fell through as the house we were looking at was taken off the market. I will discuss this with the bank in the next few weeks but I just wanted to test the waters first. All responses appreciated.


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    #2
    ifeelstupid
    Registered Users Posts: 443 ✭✭ifeelstupid


    As far as I am aware mortgage will be based on the estimated FINISHED value of the house and not on cost of construction + site value. Be careful because in some parts of the country the cost of construction still exceeds market value of the finished house hence the low rate of new builds available currently


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    #3
    TENHNY
    Registered Users Posts: 91 ✭✭TENHNY


    We are Currently going through the process some banks wont touch a self build house as seen as high risk,

    They criteria is 10% deposit plus 10% continuous of cost of build plus legal fees & Engineer fees.

    We also have our site 25 k they didnt take that into consideration as it was gift, but i think if you bought it they would there is link on here some where which gives the breakdown of including site into mortgage, but you have to have planing first or they wont entertain you.

    Will be interested to see how you get on?

    What part of country you in ?


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