Put Finance in Place

Securing Finance for Your Self-Build Project in Ireland

Embarking on a self-build journey is an exciting endeavor, but it often requires substantial financial planning. If you're not in a position to fully fund your project with cash, obtaining a self-build mortgage will be essential. Builders typically expect monthly payments, so it's crucial to establish a well-structured payment schedule to avoid potential cash flow issues during construction.

Self-Build Mortgages in Ireland

Several Irish financial institutions offer self-build mortgages tailored to meet the unique needs of individuals constructing their own homes. Here are some options to consider:

• AIB (Allied Irish Banks): AIB provides self-build mortgages with flexible drawdown options to align with your build stages. They offer guidance on using your site as a deposit and tools to assist with budgeting and staging building costs. aib.ie

• Permanent TSB: Permanent TSB offers self-build mortgages designed to support you through the building process, with features like stage payments and dedicated mortgage consultants to guide you. ptsb.ie

• EBS: EBS provides self-build mortgages with up to 3% cashback, offering 2% upfront and an additional 1% after five years, helping to ease financial pressures during your build. ebs.ie

Engaging a Mortgage Broker

Navigating the self-build mortgage landscape can be complex. Engaging with an experienced mortgage broker can provide access to a broader range of lenders and tailored advice suited to your financial situation. Brokers can assist in gathering all relevant information, enabling you to make informed decisions early in the process. For instance, Finance Solutions offers clear advice and access to competitive market rates through their panel of lenders.

Key Considerations for Self-Build Mortgages:

• Land Acquisition: Ensure the land has full detailed planning permission before seeking financing. While you can borrow against the land to assist with its acquisition, this may impact your cash flow as the project progresses.

• Loan-to-Value (LTV) Ratios: Typically, lenders may offer up to 80% of the property's value at any stage during the build process. This means you'll need to fund the remaining 20% through personal savings or other means.

• Stage Payments: Funds are usually released in stages as critical phases of the construction are completed. It's important to plan these stages meticulously to ensure smooth progress and payment to builders.

Additional Funding Options

If you're planning to build a property for investment purposes, such as buy-to-let or holiday lets, alternative funding options are available. Specialized lenders and brokers can provide guidance on commercial finance tailored to these types of projects.

Mortgage Broker Fees

Fees for engaging a mortgage broker can vary. Typically, you might expect:

• Initial Application Fee: Approximately €495 upon full application to the lender, after a comprehensive assessment has been conducted.

• Mortgage Offer Fee: Around €1,500 due upon issuance of the mortgage offer.

Important Reminder

Your home may be repossessed if you do not keep up repayments on your mortgage. It's essential to assess your financial situation carefully and ensure that mortgage repayments are manageable within your budget.

Embarking on a self-build project requires careful financial planning and consideration of various funding options. By exploring the resources and lenders available in Ireland, you can find a financing solution that aligns with your building aspirations.