Thinking of buying a fixer upper in Ireland? You’re not alone. Plenty of us see potential in a house that needs a bit (or a lot) of work, especially with today’s competitive property market. But making that dream a reality isn’t just about imagination and elbow grease; you’ll need the right mortgage to cover both buying and renovating your new project. That’s where a mortgage for purchase and renovation comes in.
What is a fixer upper?
A fixer upper is a property that you want to buy and renovate. In Ireland, this might be anything from a tired 1970s semi to a derelict rural cottage in need of a new roof. While they often come with lower price tags, they demand vision and solid renovation plans and budget.
Why buy a house that needs renovation?
There are plenty of good reasons to choose a buying a house that needs renovation:
- Lower purchase price: Fixer uppers tend to attract less competition, offering better value per square foot.
- Customisation: Create your perfect home to your own taste.
- Equity gains: With smart renovations, you can significantly increase your property’s value.
- Access to grants: In Ireland, certain properties qualify for government support, making renovation more affordable.
Buying a house that needs renovation is not all romance and rustic charm, of course. It’s about having a plan and the right funding to bring your vision to life.
How to get a mortgage for a fixer upper in Ireland
If you’re getting a mortgage to renovate a house in Ireland, you’ll likely need a specialist product that covers both the property purchase and renovation costs.
These mortgages are commonly referred to as:
- Buy and renovate mortgage
- Mortgage for purchase and renovation
- Mortgage that includes renovation costs
- Home mortgage with renovation loan
- Fixer upper mortgage
These specialist loans differ from standard mortgages. lenders will look at:
- The property’s current (as-is) value
- The estimated value after renovations
- Your renovation plans and costings
Typically, you’ll need professional estimates or builder’s quotes to prove your plans are viable.
Renovation-friendly mortgage options and key lending terms to know
If you are buying a house to renovate in Ireland, there are mortgage options available, each designed to help you fund both the initial property purchase and the planned works.
Types of renovation mortgages in Ireland
Here are the most common buy and renovate mortgage solutions in Ireland:
- Standard renovation mortgage: Combines purchase price and renovation costs into one loan. A popular choice if you’re seeking a mortgage that includes renovation costs.
- Self-build mortgage: Ideal for derelict or severely uninhabitable properties. Effectively treated as a new build by lenders, this option provides stage payments as construction progresses.
- Green mortgages: If renovations significantly improve energy efficiency (e.g. insulation, solar, BER upgrades), you could qualify for green mortgages with discounted rates.
Tip: Not all lenders offer these specialist options, so it’s essential to work with an advisor who understands the fixer upper mortgage market in Ireland.
Government grants that can boost your renovation budget
- Pairing a mortgage with grants can make your project more affordable: Vacant Property Refurbishment Grant: Up to €50,000 (or €70,000 for derelict homes) to make a vacant property habitable.
- SEAI Home Energy Grants: financial support for sustainable energy upgrade grants for insulation, heating systems, and more.
These options can make your renovation more affordable and sustainable.
What documents do I need for a buy and renovate mortgage?
Lenders will want plenty of paperwork to approve a mortgage for house and renovation:
- Proof of income (recent payslips, employment history, tax returns)
- Bank statements
- Photo ID and proof of address
- Detailed renovation plans and costings
- Builder’s quote or architect’s plans
- Valuation report showing the current and projected property value
If you’re a first-time buyer, you may also need to show eligibility for schemes like Help to Buy.
Can your mortgage include renovation costs?
Absolutely, it’s the whole point! These mortgage products are designed so you can add renovations to mortgage borrowing. You’re not just buying the house; you’re financing the upgrades too.
But you’ll need a solid plan. Lenders won’t give you the cash upfront to spend however you like.
How are renovation mortgage funds released?
Unlike a standard mortgage loan where all funds arrive at closing, renovation mortgages funds are paid out in stages to match your renovation timeline:
- Initial payment: To buy the property.
- Subsequent stage payments: Released in phases as renovation work progresses.
- Inspections required: Each stage typically requires sign-off by a valuer or surveyor.
This ensures funds go where they’re meant to—so managing cashflow with your builder is key.
Tips for securing and managing a renovation mortgage successfully
Whether you’re getting a mortgage on a fixer upper or planning a major overhaul, follow these tips to increase your chances of success:
- Get detailed, realistic renovation quotes.
- Include a contingency buffer of at least 10% for unforeseen costs.
- Choose experienced builders comfortable with staged payments.
- Be aware of hidden costs of buying a house in Ireland, from legal fees to surveys.
- Already a homeowner? Consider a remortgage for home improvements and extensions instead of buying new.
With proper planning, you’ll avoid the classic Irish nightmare of living in a building site indefinitely!
How MortgageLine can help with your fixer upper project
At MortgageLine, we love a good fixer upper story. Whether you’re buying a city semi that needs updating or a derelict cottage in the west of Ireland, we’re here to help you:
- Choose the best buy and renovate mortgage for your plans.
- Secure green mortgages for energy efficient upgrades.
- Navigate grants like the vacant property refurbishment grant.
- Prepare renovation plans and costings to satisfy lenders.
- Manage the application from start to finish with expert, friendly guidance.
Contact us today for a free mortgage review call. Let’s turn that “needs work” property into your dream home—without the stress.
FAQs
Can you get a mortgage to do up a derelict house?
Yes. Typically. you’ll use a self-build mortgage to fund the complete renovation and restoration. Lenders treat it much like building a new house, with stage payments and inspections.
How much does it cost to renovate a house in Ireland?
It depends on scope and location. A modest refurb might cost €20,000–€50,000. Major renovations—especially for older or derelict properties—can cost €100,000–€300,000 or more. Always get multiple quotes and plan for contingencies.
Are there any government grants available to restore derelict properties?
Yes! The Vacant Property Refurbishment Grant offers up to €50,000 (or €70,000 for derelict homes) for renovations. The SEAI also offers grants for energy upgrades.
If you’re ready to explore a fixer upper mortgage Ireland solution, get in touch. We’ll help you finance your vision—without the headaches.
