Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage Question on a New build

Options
  • 10-10-2017 7:07pm
    #1
    Sponsorgate
    Registered Users Posts: 250 ✭✭


    Hi All

    Need advice on getting a mortgage please

    I have got tenders for my build for approx 300,000 & the bank are willing to give me 175,000 with a deposit of 32k which I have. Effectively I am 90,000 short ( I know getting planning for a big house without having the money was a little silly)

    I have a good reliable friend who is registered & is willing to manage the build for me . I am just wondering if there is any way I can get the bank to loan me the 175k so i can see how far that goes on my build for now. The details I have got from the bank are that I have to prove the amount they are giving me will fund the whole build which it obviously won't

    Any advice would be greatly appreciated

    Thanks
    SponsorGate


Comments

  • Options
    #2
    ustari
    Registered Users Posts: 504 ✭✭✭ustari


    Not unless you can get a QS to cost it up for that amount...


  • Options
    #3
    FiOT
    Registered Users Posts: 149 ✭✭FiOT


    Sponsorgate wrote: »
    Hi All

    Need advice on getting a mortgage please

    I have got tenders for my build for approx 300,000 & the bank are willing to give me 175,000 with a deposit of 32k which I have. Effectively I am 90,000 short ( I know getting planning for a big house without having the money was a little silly)

    I have a good reliable friend who is registered & is willing to manage the build for me . I am just wondering if there is any way I can get the bank to loan me the 175k so i can see how far that goes on my build for now. The details I have got from the bank are that I have to prove the amount they are giving me will fund the whole build which it obviously won't

    Any advice would be greatly appreciated

    Thanks
    SponsorGate


    You won't get your final draw down from the bank without your engineer signing off that the build is complete and meets all building regulations. That amount could be 10% of the 175,000 which is a lot of money. I would strongly discourage you from doing what you are suggesting, you could get yourself into a bother very quickly.
    If it was 10,000 you might find it somewhere but not 90,000...

    You either need to downsize your plans or go back to the bank to see if you can borrow any more money if that's possible for you to afford. From my experience of self - building, prices can change from the time you get them first, materials are getting dearer and labour is more difficult to find. I would be aiming to have more funds than you think you need rather than so much less to start off with.


  • Options
    #4
    californiabear
    Registered Users Posts: 56 ✭✭californiabear


    I'd advise downsizing, as the bank are very strict on the estimates for self builds - if you price a house at a lot less than it conventionally costs to build, they won't accept it as they know it's not possible to build a 300k house for 210k.
    In terms of the bank giving you the 175k to see how far it goes, their issue will be that the mortgage would then be secured on an unfinished house, and one that is worth a lot less than expected.
    Another option would be to reduce the spec on some items in the house and get the cost down considerably that way, and save as much as you can for another few months, thus reducing the 90k gap from both ends. Not sure the bank would go for this, but if you get closer to what you need, a good broker might be able to help you get more than the 175k mortgage.


  • Options
    #5
    voyager1
    Registered Users Posts: 17 ✭voyager1


    From my own very limited experience the least the bank will lend you is €85 per sq m.  Anything less than that will be a refusal unless you can provide the difference.  There is no chance they will go down the road of 'see how you get on with that'


  • Options
    #6
    Tefral
    Registered Users Posts: 4,358 ✭✭✭Tefral


    voyager1 wrote: »
    From my own very limited experience the least the bank will lend you is €85 per sq m.  Anything less than that will be a refusal unless you can provide the difference.  There is no chance they will go down the road of 'see how you get on with that'

    Exactly and the costing certificates have a space in them that requires the persons PI insurance so theres no way in hell id take a chance as a professional and sign that off.


  • Advertisement
  • Options
    #7
    efbeef
    Registered Users Posts: 39 ✭efbeef


    We are completing a self build (2700sqm2 storey and a half) with a mortgage of 190k and will have cost us in total 235k. We had the figure we wanted and the engineer did the costing accordingly so the banks would loan us the money, no QS involved.

    The only reason we did this and the engineer agreed to it was because we know a huge amount of people in the buildings (including my father) and we knew we could get something livable in for that price.

    Unless you are going direct labour and know people that will help out you will not finish the house.....as californiabear said downsize and reduce spec!


Advertisement