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Using own cash first before 1st mortgage draw down

  • 10-02-2018 11:20pm
    #1
    froshtyv
    Registered Users, Registered Users 2 Posts: 225 ✭✭


    Hi,

    I had a look through some threads on here but didn't come across the info i was looking for.

    I am doing a self-build and am wondering do i have to use up all my savings first before the bank will let me draw down the first part of the mortgage.

    For example.
    Lets say I need €200,000 to complete the build.
    I need minimum 10% which is €20,000 so borrowing €180,000 from the bank.

    If i have another €10,000 in my bank account does the bank want me to use this up first along with my €20,000 before they will let me draw down any of the €180,000 from them?

    I am meeting the bank to discuss this but would prefer to know before hand.
    I would prefer to pay for some parts of the build in cash such furnishings etc.


Comments

  • #2
    fits
    Registered Users, Registered Users 2 Posts: 13,592 ✭✭✭✭fits


    Not wth haven anyway.


  • #3
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    The lender will require you to use your 20k deposit upfront to start the build and then draw down in stage payments certified by your supervising Architect or Engineer. Usually people put in the foundation/floors with their own funds and then drawdown for the blockwork on the value of work done to date.


  • #4
    froshtyv
    Registered Users, Registered Users 2 Posts: 225 ✭✭froshtyv


    Trish56 wrote: »
    The lender will require you to use your 20k deposit upfront to start the build and then draw down in stage payments certified by your supervising Architect or Engineer. Usually people put in the foundation/floors with their own funds and then drawdown for the blockwork on the value of work done to date.

    Thanks Trish,

    This is what i was hoping to do.

    I will talk to the bank but that clears it up better for me.

    Thanks


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