Which mortgage to choose?

dellas1979

Hello all,

I am in the process of building a house.

All becoming real!

I initially went to EBS to find out at least how much I could potentially borrow so that I could design the house (currently gone in for planning). I dont have anything submitted to them yet. The cashback is tempting.

However, I am a customer of AIB. And I just heard today that Ive gotton approval in principal for the amount am looking for. They dont offer a cashback.

How does one choose which is the best mortgage for them?

fits

Weigh up total repayment amount against your desire for cash back. I'd go with cheapest overall over lifetime of mortgage. AIB own EBS by the way.

ErinGoBrath

Hi,

I'm guessing that the bank that doesn't offer cashback has a lower interest rate?

While cashback might suit some in terms of timing I believe you'll probably pay longer for it in the long run.

Check out the best rates available here:
https://www.bonkers.ie/compare-mortgages/search/

I've also found this site to be very handy for checking all the variables and fiddling about with the terms:
https://www.drcalculator.com/mortgage/ie/

Best of luck!

dellas1979

Thanks.

I suppose am just finding it confusing. Because its a build, not straight forward buying a house.

Am looking for e150,000

Over 27 years.

The site would be worth 40-50k.

They started talking about LTV...and that the more security you can offer (I guess the land? Plus Ive savings....the savings are paying for architect etc)

Not great at understanding all this.

Any explaining would be appreciated!

368100

dellas1979 wrote: »

Thanks.

I suppose am just finding it confusing. Because its a build, not straight forward buying a house.

Am looking for e150,000

Over 27 years.

The site would be worth 40-50k.

They started talking about LTV...and that the more security you can offer (I guess the land? Plus Ive savings....the savings are paying for architect etc)

Not great at understanding all this.

Any explaining would be appreciated!

I'm in the same boat. I'm going with EBS as they offer cashback and free construction insurance for 1 year. Their rates are fairly good too though not the best in the market. I think KBC is lowest but they don't do self build.

Do you mind me asking what size house you're building and what your overall budget is?

dellas1979

100 square meter, 3 bed, 3 bathroom passive house.

Build will be 150k. I've asked architect to cost/design/build for this amount. Site was a gift.

Savings will pay/paid for architect, percolation, council fees, ESB, and water connection, and some finishes (e.g., floors etc).

House will be up to builders finish with 150k. Hoping to go with a building company (just submitted for planning last week).

Kitchen will be a gift.

The olde cashback from EBS is very tempting. But I dont think Ill be ready to build by sept (youve to draw down first stage by end of Sept to get the cashback...they dont know if they will extend this).

What about yourself?

phormium

Free cover for the house 'under course of construction' or free actual insurance covering the self build and your public liability? Big difference so just make sure it is the cover you think it is. I was involved in a case where self builder thought he had the second kind when what he had was the first, worker got injured, well you can guess the rest!

368100

dellas1979 wrote: »

100 square meter, 3 bed, 3 bathroom passive house.

Build will be 150k. I've asked architect to cost/design/build for this amount. Site was a gift.

Savings will pay/paid for architect, percolation, council fees, ESB, and water connection, and some finishes (e.g., floors etc).

House will be up to builders finish with 150k. Hoping to go with a building company (just submitted for planning last week).

Kitchen will be a gift.

The olde cashback from EBS is very tempting. But I dont think Ill be ready to build by sept (youve to draw down first stage by end of Sept to get the cashback...they dont know if they will extend this).

What about yourself?

They normally do extend it due to the competition in the market.

Mine is 200sq metre 4 bed, 3 bath by direct labour. I have a brother in the industry and he's going to manage the build for me.

Also will have electrics and plumbing labour for free, just tge materials. Site was gifted.....and savings of about 30k. Budget is 200k but I'm thinking of applying for mortgage of 230k just in case....don't need to draw it all. That's nearly the max mortgage I'd get.

dellas1979

Ah you are lucky if you can go direct labour!

I have no interest or idea about all that...and dont know anyone in the industry...building company is what I hope to go with.

I got a really good architect. And the layout/design is excellent/clever. Thats where I mostly chose to put my money. As 100 sq meter isnt the biggest. But amazing what you can get with good design.

When I get to kitchen/floors etc, I will go direct labour.

368100

dellas1979 wrote: »

Ah you are lucky if you can go direct labour!

I have no interest or idea about all that...and dont know anyone in the industry...building company is what I hope to go with.

I got a really good architect. And the layout/design is excellent/clever. Thats where I mostly chose to put my money. As 100 sq meter isnt the biggest. But amazing what you can get with good design.

When I get to kitchen/floors etc, I will go direct labour.

My architect was a disaster. Uncontactable for weeks at a time and I had to negotiate with the council and give him the inro when I really didn't know what I was talking about. Never take on a family friend to do a paid job!

Best of luck with planning and the build. As before, I'd recommend EBS, they'll also draw in as many stages as I want, whatever suits me.

Trish56

For a self build you must have a qualified Architect with professional Indemnity Insurance to supervise the construction and give detailed costings of the build to include 10% for costs overruns and with some lenders you can include professional fees and other costs. The minimum they will accept for construction cost is €85 per sq. ft. If your costings are 200k then you cannot apply for 230k.

368100 wrote: »

They normally do extend it due to the competition in the market.

Mine is 200sq metre 4 bed, 3 bath by direct labour. I have a brother in the industry and he's going to manage the build for me.

Also will have electrics and plumbing labour for free, just tge materials. Site was gifted.....and savings of about 30k. Budget is 200k but I'm thinking of applying for mortgage of 230k just in case....don't need to draw it all. That's nearly the max mortgage I'd get.

368100

Trish56 wrote: »

For a self build you must have a qualified Architect with professional Indemnity Insurance to supervise the construction and give detailed costings of the build to include 10% for costs overruns and with some lenders you can include professional fees and other costs. The minimum they will accept for construction cost is €85 per sq. ft. If your costings are 200k then you cannot apply for 230k.

That's incorrect. A qualified engineer can also sign off on the stage payment drawdowns.

As for your calculations, you might want to recheck.

€85 per square ft is a guideline. I'm working on €100 per square ft. €100 x 2031sq ft = €203k ......+ 15% overruns = €233,450.

I work for a bank so I know how it works. I've also ran the figures past EBS who have confirmed they can proceed.

Trish56

Correct qualified Architect/Engineer can supervise once they have Professional Indemnity Insurance.

I'm a broker and in the Mortgage Business for over 40 years and deal with a number but not all of the lenders however I do deal with Haven which is the broker arm of AIB and AIB, EBS and Haven mortgages are underwritten centrally in AIB. You mentioned in your post that 200k was your budget if that is the case I am not aware of any lender in the industry that will lend you 230k if cost of project is 200k. I also did mention that €85 per sq. ft. is the minimum they will accept. The cost is actually higher for Dublin and other Cities. If your build is 200sq m then that is actually 2153 sq. ft. and not 2031 sq. ft. You have since clarified that now your project costings is 233k. I have the figures in writing so no need to check my calculations, you however have since changed your figures.

368100 wrote: »

That's incorrect. A qualified engineer can also sign off on the stage payment drawdowns.

As for your calculations, you might want to recheck.

€85 per square ft is a guideline. I'm working on €100 per square ft. €100 x 2031sq ft = €203k ......+ 15% overruns = €233,450.

I work for a bank so I know how it works. I've also ran the figures past EBS who have confirmed they can proceed.

368100

Trish56 wrote: »

Correct qualified Architect/Engineer can supervise once they have Professional Indemnity Insurance.

I'm a broker and in the Mortgage Business for over 40 years and deal with a number but not all of the lenders however I do deal with Haven which is the broker arm of AIB and AIB, EBS and Haven mortgages are underwritten centrally in AIB. You mentioned in your post that 200k was your budget if that is the case I am not aware of any lender in the industry that will lend you 230k if cost of project is 200k. I also did mention that €85 per sq. ft. is the minimum they will accept. The cost is actually higher for Dublin and other Cities. If your build is 200sq m then that is actually 2153 sq. ft. and not 2031 sq. ft. You have since clarified that now your project costings is 233k. I have the figures in writing so no need to check my calculations, you however have since changed your figures.

I was using approx figures as funnily enough, I'm not treating a boards post as my formal mortgage application.

Cost of the project is 200k, overruns are an allowance over this but with all due respect, I wasn't asking for advice as I'm well aware of the requirements of a mortgage.....Thanks anyway.

Trish56

Glad to hear you know it all however your posts and comments are not very helpful to the OP and others. I don't think anyone expected you to post your mortgage application online (all 10 pages) however factual information would be handy for others. Best of luck with your self build and mortgage something tells me you're going to need it.

368100 wrote: »

I was using approx figures as funnily enough, I'm not treating a boards post as my formal mortgage application.

Cost of the project is 200k, overruns are an allowance over this but with all due respect, I wasn't asking for advice as I'm well aware of the requirements of a mortgage.....Thanks anyway.

368100

Trish56 wrote: »

Glad to hear you know it all however your posts and comments are not very helpful to the OP and others. I don't think anyone expected you to post your mortgage application online (all 10 pages) however factual information would be handy for others. Best of luck with your self build and mortgage something tells me you're going to need it.

You're the one sounds like they know it all coming straight in correcting someone who didn't ask for advice without understanding (a) what they're saying or clarifying and (b) what their own backround is.

I stand by all the info in my posts, the info in them was factual, you just didn't understand it. you're just being pedantic now over something that your advice wasn't required for so I couldn't be bothered engaging you further. I feel sorry for your customers though.

Laters!

dellas1979

Trish56 wrote: »

I'm a broker and in the Mortgage Business for over 40 years and deal with a number but not all of the lenders

Could you impart some of your wisdom on me/original question, please and thanks.

368100 and I were just having the bants about building. I dont think they were looking for advice.

Thats meeee! *Waves hands*