Thinking of buying a charming fixer-upper in Cork or finally converting the attic in your Dublin semi-D? Renovating a home in Ireland, whether it’s your first property or your forever home, can be both exciting and daunting. The big question is: can you get a mortgage for renovations in Ireland? The answer is yes, but there’s more than one way to do it.
With the right approach, you can secure a renovation mortgage that covers both the purchase of the property and the cost of the improvements. Several lenders in Ireland offer solutions tailored for buyers looking to upgrade or transform a home.
Let’s break down your options, the pros and cons, and how MortgageLine can help you turn your vision into reality without breaking the bank, or your spirit.
What is a renovation mortgage?
A renovation mortgage is a specialist type of home loan that allows you to borrow money not just to buy a property, but also to fund the renovations to update it and make it liveable (or lovable!).
It’s especially useful if you’re applying for a mortgage to buy and renovate a property that needs serious TLC, like rewiring, new plumbing, or turning three pokey bedsits back into a family home.
These mortgages are typically structured in two parts:
- Stage 1: Funds released to purchase the property.
- Stage 2: Additional funds released in stages as renovation work progresses and is certified.
Not every lender offers this type of mortgage, and the conditions can vary widely. That’s why working with a broker like MortgageLine can be a smart move and help you find the best option and improve your chances of approval.
Can you use a mortgage for renovations?
Yes, in certain cases, you can use a mortgage for renovations, but it depends on your circumstances and the type of property you’re financing.
There are two main scenarios:
- Buying a property that needs work:
If you’re purchasing a home that requires improvements, you may qualify for a mortgage to cover renovations, where the loan includes both the purchase price and the estimated cost of the works. - You already own the property:
Here, you’re not looking to buy, but rather improve your current home. You may be able to remortgage for home improvements. This essentially replaces your current mortgage with a larger one to release equity to pay for the renovation.
Whether you’re planning a full restoration or just freshening things up, the key to approval is to prove to the lender that the renovations will add value and that the work will be completed by qualified professionals.
Can you take a mortgage just for home improvements?
Technically speaking, yes, although it’s not called a mortgage in the traditional sense.
If you already own your home and don’t need to purchase another property, you can still access funding for renovations. The main options are:
- Top up your existing mortgage, or
- Remortgage to a higher amount, releasing equity to cover the works(more on that below)
This isn’t the same as a personal loan or credit card. A mortgage top-up will typically offer better interest rates and longer repayment terms, making it more affordable for substantial work like extensions, insulation upgrades, or energy-efficient retrofits.
What to consider before applying for a renovation mortgage
Before you start picking out tiles or sketching kitchen layouts, it’s important to understand what lenders look for when you apply for a renovation mortgage. It is worth thinking through the following:
✅ Planning permission
If your renovations are structural, like adding a two-storey extension, you’ll likely need planning permission. This can delay your mortgage approval or the staged release of funds.
✅ Cost estimates
Lenders will usually want a builder’s quote or costings up front. You need to make it clear to the mortgage lender what the planned works will cost.
✅ Property valuation
Your lender will assess the “after works” value of the property to determine how much they’re willing to lend. That means your proposed renovation plans must add clear value to the property for the mortgage to be approved.
✅ Building stage inspections
Renovation mortgages are normally released in stage payments. Inspections by your Architect or Supervising Engineer will be required at each stage before funds are released. Be prepared that the funds are released in arrears as the work is done.
Using a mortgage top-up to fund home renovations
If you already own your home and are sitting on some equity, a mortgage top-up can be a brilliant way to release funds for your renovation plans. Instead of turning to high-interest credit cards or personal loans, you can use your existing mortgage to access extra funds.
For example, if you’ve been in your home for a few years, your mortgage balance has reduced, and your property’s value has increased. You might be eligible to top up your mortgage, often at the same rate as your current one or close to it.
This is often referred to as a remortgage for home improvements. A mortgage top-up can help you finance everything from a new kitchen to a rear extension without taking on high-interest debt.
How MortgageLine helps you finance your renovation project
Here at MortgageLine, we understand that renovation projects are a labour of love, but they shouldn’t be a logistical nightmare. That’s why we provide:
- Access to lenders who specialise in renovation mortgages
- Expert guidance on staged drawdowns and paperwork.
- Support if you’re getting a mortgage to buy and renovate a property.
- Advice on whether a top-up or remortgage for home improvements is the right option for you.
- Help calculating how much you can borrow for a mortgage in Ireland, including renovation funding.
Whether you’re buying your dream doer-upper in rural Kerry or finally building that home office in the attic, we’re here to guide you through every step of the way.
FAQs
Can you borrow more for home improvements?
Yes. You can apply to increase your current mortgage through a top-up or remortgage, depending on your lender’s criteria and your equity. Lenders will assess your income, existing balance, and equity before approving the additional funds, which can be used for extensions, upgrades, or energy-efficient works.
What is the best way to finance a renovation?
If you’re a homeowner, topping up or remortgaging is usually more cost-effective than a personal loan. If you’re buying a fixer-upper, look for a renovation mortgage that combines the cost of works with the property purchase.
Which bank is best for a renovation loan?
It depends on your needs. Some lenders are more flexible with drawdown stages or offer better rates for energy-efficient improvements. A mortgage broker like MortgageLine can help you find the most suitable lender for your situation.
Can you get a renovation loan on top of a mortgage?
Yes. If you already hold a mortgage, you can apply for a top-up loan or remortgage to a higher value to fund your renovations. Approval will depend on your income, equity, and the scope of the project.
Ready to renovate?
Renovating your home in Ireland is entirely possible with the right mortgage strategy. Whether you’re buying a property to fix up or enhancing your current home, you don’t have to figure it all out alone.
Contact us today for a free mortgage review call and we’ll help you explore your options with no pressure and plenty of practical advice.
