Site as deposit

km79

Just a quick one
Trying to get clear in our heads a few things before seeking house sale next year

If we buy a site for say 30k and then wnat to build a house worth 250k does the site act as deposit or do we need to put more with it to make up 20% of new build price ?

Mooooo

I'd doubt it very much,

Klonker

Site can be part or all of deposit but needs to be over the deposit limit (10% or 20%) unless you get exemption. So if you're a first time buyer the site would be sufficient (just over 10%), if not you'd need another €30k.

I'm actually not 100% on all that but that's my understanding.

km79

Klonker wrote: »

Site can be part or all of deposit but needs to be over the deposit limit (10% or 20%) unless you get exemption. So if you're a first time buyer the site would be sufficient (just over 10%), if not you'd need another €30k.

I'm actually not 100% on all that but that's my understanding.

Thanks I was thinking the same
Probably means it's not an option as all our funds would be gone more or less then leaving nothing for furnishing house

Rent and then buy will have to be the route we take so

On the 10%/20% thing
How is it decided if you only have to have 10% if you are not a FTB? I've seen people mention it
We would have decent wages for the amount we would need to borrow, no loans and permanent jobs if that makes a difference .

Klonker

km79 wrote: »

Thanks I was thinking the same
Probably means it's not an option as all our funds would be gone more or less then leaving nothing for furnishing house

Rent and then buy will have to be the route we take so

On the 10%/20% thing
How is it decided if you only have to have 10% if you are not a FTB? I've seen people mention it
We would have decent wages for the amount we would need to borrow, no loans and permanent jobs if that makes a difference .

Yeah 10% is for FTB, 20% otherwise.
If the amount you are borrowing is low of the 3.5 times your wages, you may be get an exemption on the deposit rule. 20% of mortgages to non-FTB can get the deposit exemption. Rumour is banks give out most of their exemptions at the beginning of year and then run out but I'm not sure how true this is. Its worth going into a mortgage advisor and have a chat, just stating your plans and see if there's any chance of the exemption, obviously the larger your wages to what you're borrowing the better chance of getting.

The structure of the proportionate LTV allowances is amended. 5% of the value of new lending to first time buyers will be allowed above the 90% LTV limit and 20% of the value of new lending to second and subsequent buyers for primary residences will be allowed above the 80% LTV limit. This replaces the current requirement which allows 15% of total lending for primary dwellings (the sum of lending to first time buyers and second and subsequent buyers) above the LTV limits.

Trish56

If site cost is 30k and construction costs are 250k total = 280k then as a 2nd time buyer you can borrow up to 80% = 224k so need a deposit of 56k. Depending on affordability, credit rating, repayment capacity you may qualify for an exception however most exceptions with the lenders are gone by end of September so a good time to apply would be first 6 months of year.

km79

Trish56 wrote: »

If site cost is 30k and construction costs are 250k total = 280k then as a 2nd time buyer you can borrow up to 80% = 224k so need a deposit of 56k. Depending on affordability, credit rating, repayment capacity you may qualify for an exception however most exceptions with the lenders are gone by end of September so a good time to apply would be first 6 months of year.

Thanks it would be then we would be looking
Just getting my head straight on a few things now
Probably going to call into one or 2 banks soon for a chat