Self Build Mortgages (www.selfbuildinireland.com)

Most of the major Lenders in the mortgage market today will give you a mortgage to build your own home in Ireland.There is 4 key factors to consider for a self build mortgage in Ireland
:1) Do you need money to buy the site?
2) Does the site have full planning permission?
3) What will the cost of construction be and what will the estimated market value on completion be?
4) Will the mortgage been drawn down in stages at each step of construction?
To determine the maximum you will be allowed borrow, Lenders will ask the following key questions
:1) What is your current salary?
2) What are you current loan liabilities?
3) What age are you?They will then advise of your maximum borrowing potential.The amount you can actually borrow is then determined by a set of restrictions call loan to values.Firstly most Lenders will only allow you to borrow 80% of the site value to buy it assuming your maximum borrowing potential covers this amount.They will then lend you 100% of the cost of construction assuming your overall borrowings will be less then 92% of the completed open market valuation of the property.One key point to note is the site must have full planning permission on it before the Lenders will give you a loan offer or money to buy the site.
The following is a list of documents you will be required to present to have your case formally assessed.If you are a PAYE employee of a company you will be required to present the following documentationa) Salary Certificate (1 page document filled out by your employer)b) 2/3 recent payslipsc) Last years P60d) Last 6 month personal current accounts. If you are self employed usually you would be required to present the following documentation:a) Accountants Report Formb) 2 Years trading accountsc) 3/6 month business current accountsd) 6 month personal current accountsAdditional for a site build you will also be required to submit:a) Full planning permissionb) 6 point letter from the builder \ engineerc) Costings from the builder \ engineerThe 6 point letter above is a standard builders letter which will detail the breakdown of construction at each stage.
The loan can then be drawn down in stages on receipt of stage certs from the builder \ engineer.For example:Site Purchase 80kStage 1 Foundations 20k Stage 2 First level flooring 25kStage 3 Roof Level 30kStage 4 Final Completion