Approval in Principal
Most Lenders will approve an application without Full Planning and full costings if you would like to review your options before committing to any further expenditure.
Mortgages to provide financial support throughout the different stages of the self-build process.
These mortgages provide financial support throughout the different stages of the self-build process, allowing borrowers to fund the construction of their dream home, normally over an 18 Month term.
Normal Central Bank of Ireland rules apply.
For Example if you are a 1st time Buyer… Lending to 4X Combined Income and 90% loan-to-value (LTV) Some Banks lend 100% of build cost if you have already purchased/inherited the site, if it’s still within the Estimated Future Value.
You should also have an extra 10% of the total cost to cover unforeseen expenses (your own funds are put into the project first). The cost of any special conditions attached to the planning permission should also be included in the calculations.
Most Lenders will approve an application without Full Planning and full costings if you would like to review your options before committing to any further expenditure.
Before approving a Full Letter of Offer on a self-build mortgage, lenders typically require valid planning permission for the construction project.
Lenders often request an architect’s costings report to confirm the cost of the build, and on the final stage drawdown they will request a final report along with certificate of compliance to confirm that the construction complies with building regulations and planning.
Instead of receiving the full mortgage amount upfront, funds are released in stages at different milestones during the construction process. This ensures that borrowers have access to funds when needed.
Some self-build mortgages offer interest-only repayments during the construction phase, which helps ease the financial burden while the property is being built.
Lenders will Initially request a valuation of the site and confirmation of the Estimated Value of the property on completion, a Final Valuation is required on completion of the build, this will confirm that the property is completed and the reinstatement and market value of the property.