Self build mortgage

1houseplease

Hi. Would anyone have any advice re mortgage provider for self build? Any good/bad experiences?
Thanks

fits

There are only four providers for self build mortgages at the moment. AIB/Haven/EBS, Ulster Bank, PTSB and Bank of Ireland.

Bank of Ireland dont offer mortages through brokers. Their variable rates are the highest by far.

I cant recommend any of them as we are just thinking about submitting an application at this stage. Information about the whole process is scant enough with self buildss.

1houseplease

fits wrote: »

There are only four providers for self build mortgages at the moment. AIB/Haven/EBS, Ulster Bank, PTSB and Bank of Ireland.

Bank of Ireland dont offer mortages through brokers. Their variable rates are the highest by far.

I cant recommend any of them as we are just thinking about submitting an application at this stage. Information about the whole process is scant enough with self buildss.

Yes agreed. The rates that are given on the websites, am I right in saying these are for buying a house and not building?

1houseplease

Also, any reason for not to use a broker?

fits

I think it depends on the loan to value of the house you are building. But again, information is scant on the whole process. We are using a broker (who we are paying fees to) to help negotiate the process.

The Veteran

1houseplease wrote: »

Also, any reason for not to use a broker?

We built using Bank if Ireland at the height of the liquidity crisis. They are difficult to deal with it or were then. You will find that a lot of their staff don't understand self build.

General advice: get mortgage for the absolute maximum amount you can - NOT what you think you will need. I say this because it is very difficult to go back for more - if you get approval for €500k but only take out €350k that's fine me but if you apply for 350 and then need an extra 50 to finish you will break your own heart!

Self build is great - don't stress about it; don't underestimate the effort even if just time and remember to do your research. Self builders will share prices info\opinions no problem.

We went direct to the Bank but if a broker works for you then grand - just remember they are on a commission so make sure you have all the options before you before you sign up

1houseplease

Looking at <50% LTV. EBS tell us they have best rates and 2% cash back..

bee06

Our self build mortgage is with AIB. Never had any issues through the process but we had a broker guiding us through it. There is a lot more paper work needed for a self build. The mortgage rates are dependant on LTV regardless of whether you are buying or building.

368100

EBS used to do free site insurance for self builds..think they still do...I priced that with BoI and is was over €800 so with the cash back offer it's a good deal

1houseplease

Does a broker get the very same deal for you from the bank as you would if you had walked into the bank yourself?

fits

Nope. A lot of the cash back deals aren't available through brokers.

1houseplease

Ok thanks. So there really there is no advantage of using a broker other than they do the footwork for you?

1houseplease

Is anyone familiar with inheriting a site to build a house. Is it necessary to have the site put into both names or can it be kept in son/daughters name. Is there a tax to be paid?
Thanks

bee06

Some answers in this thread to your first question http://touch.boards.ie/thread/2057657597/1/#post101323240

Tax depends on the value of the site and whether you have received a gift or inheritance already from your parent. Do some research on Capital Aquisitions Tax on the revenue website.

368100

1houseplease wrote: »

Is anyone familiar with inheriting a site to build a house. Is it necessary to have the site put into both names or can it be kept in son/daughters name. Is there a tax to be paid?
Thanks

Most banks will require it in joint names if mortgage is in joint name, joint mortgage sole title is hard to get agreed and there needs to be a good reason.

If you inherit the site you'll be liable for capital Aquisitions tax on any value over the revenue thresholds which are different depending on relationship to the deceased. If it's a parent then budget just raised threshold to €310k. Any inheritance you may have had before from a parent will be included in the overall figure.

If a site is gifted while parent is still alive, you're liable for stamp duty of 1% and the parent is liable for capital gains based on market value of the land even though no payment may be exchanging hands. There is an exception to this if the site is to build a house and the site area doesn't exceed 1 acre exclusive of house footprint then not capital gains applies

Trish56

That's incorrect - all of the cash back deals are indeed available when the mortgage is processed through a broker with the exception of Bank of Ireland who do not deal with brokers but have the highest variable rate in the market at 4.50%

fits wrote: »

Nope. A lot of the cash back deals aren't available through brokers.

Trish56

There are many good reasons for using a broker when applying for a self build mortgage.
Brokers deal with the majority of lenders and are familiar with each lenders credit criteria and policy.
Many brokers have huge experience with self build having worked in the mortgage business for many years unlike some mortgage advisers working in banks with little or no experience.
Brokers will know what lender to approach for a self build mortgage to suit your circumstances.
Brokers will be aware what lenders such as KBC do not lend for self build.
Brokers can indeed save you a lot of time and stress in processing your mortgage and getting a positive result.
While some brokers charge fees there are many that don't.

1houseplease wrote: »

Ok thanks. So there really there is no advantage of using a broker other than they do the footwork for you?

Trish56

If you inherited a site then it can be kept in the name of the person that inherited the site and a mortgage applied for in joint names. This is called one on title and two on mortgage and is not very difficult to get. Best rates available are AIB/Haven/EBS (all owned by AIB) and in my opinion are the best and most experienced lender in providing mortgages for a self build.

As your partner will be paying a mortgage and not on title he/she will need to get independent advice. If married as it is the family home he or she should be protected but check this out with a good Solicitor who should be very familiar with the process.

1houseplease wrote: »

Is anyone familiar with inheriting a site to build a house. Is it necessary to have the site put into both names or can it be kept in son/daughters name. Is there a tax to be paid?
Thanks

CaraK

@Trish56 are you a mortgage broker? Looking to find one for a self build