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SELF BUILD MORTGAGE
Looking for a self build mortgage expert? We are here to help you.
What Is a Self Build Mortgage?
A self-build mortgage is specifically designed for individuals constructing their own homes, differing significantly from traditional mortgages for already-built properties. In a conventional mortgage, the loan amount is disbursed in a single lump sum at the time of purchase. Conversely, with a self-build mortgage, funds are released in stages corresponding to the various phases of the construction process. This staged disbursement allows for better financial management, as you are only required to pay interest on the amount drawn down at each stage rather than on the entire loan amount from the outset. This approach provides flexibility and can be more cost-effective during the construction period.
What Documentation Do You Need?
Before your self-build mortgage can be approved, you will need to provide your lender with a comprehensive set of documentation. This includes the following:
- Final Grant of Planning Permission: This document confirms that you have received official approval to proceed with your building project according to local planning regulations.
- Site Map: A detailed map of the site where you plan to build. This should clearly outline the boundaries and any significant features of the land.
- Professional Indemnity Insurance and Initial Report: Your architect, engineer, or surveyor must provide proof of professional indemnity insurance. They must also provide an initial report detailing their assessment and recommendations for your project.
- Building Plans and Costings: Complete and detailed building plans must be submitted, showing the design and structure of your planned build. Additionally, a complete cost for the entire project, including materials and labour, should be provided.
- Initial Valuation: A qualified professional must conduct an initial valuation of the land and the projected value of the completed build and submit it to the lender.
With the guidance of our advisor, you can ensure that all these documents are prepared and in order, making the approval process for your self-build mortgage much smoother and more efficient.
Why Choose our Services?
1. Unmatched Expertise: At MortgageLine, we bring decades of combined experience in the mortgage industry to the table. Our team is comprised of seasoned mortgage brokers who possess an in-depth understanding of the market. This enables us to navigate complex mortgage landscapes effortlessly, ensuring that you receive advice and solutions tailored to your unique financial situation.
2. Personalized Solutions: We understand that each client’s needs and circumstances are unique. That’s why we go the extra mile to provide personalized mortgage solutions that align with your long-term financial goals. Whether you’re a first-time homebuyer, looking to refinance, or investing in property, we craft strategies that are bespoke to you.
3. Comprehensive Market Access: Unlike traditional lending institutions, MortgageLine has access to a wide array of lending options from various sources, including major banks, credit unions, and private lenders. This vast network enables us to offer you competitive rates and terms that you might not find elsewhere.
4. Streamlined Process: We pride ourselves on making the mortgage process as smooth and stress-free as possible. From the initial consultation to closing, our team is here to guide you every step of the way. We handle the heavy lifting, including paperwork and negotiation with lenders, so you can focus on what matters most to you.
5. Trust and Transparency: Integrity is at the heart of everything we do. At MortgageLine, we operate with the highest levels of honesty and transparency. We ensure that you’re fully informed about your options and the associated costs, so you can make decisions with confidence.
6. Client-Centric Service: Your satisfaction is our top priority. We’re committed to providing exceptional service and support, tailored to your schedule and preferences. Our team is always available to answer your questions, provide updates, and offer reassurance throughout your mortgage journey.
7. Proven Track Record: With countless successful mortgage applications under our belt, our track record speaks for itself. We’ve helped numerous clients achieve their homeownership dreams and secure favorable financial futures. But don’t just take our word for it; our client testimonials and case studies reflect the positive impact we’ve made.
How We Help
Building your own home is an exciting time but can also be daunting without the correct advice. Here at MortgageLine we have many years experience guiding self builders from mortgage approval to the completion of your self build project.
We Make It Easy
It is hard to know where to start and what your mortgage options are when building your own home.
That’s where we come in.
Your own dedicated MortgageLine Adviser will guide you on your self build mortgage journey from start to finish.
From your first call until your property is complete, MortgageLine will be with you. We will even help you in the future to make sure you continue to benefit from a great deal on your mortgage.
We are Impartial
You would not settle for any old home so why would you settle for any old mortgage?
MortgageLine are not tied to any one mortgage provider. We look at a range of options to find the best mortgage solution for you.
We can save you money
Your MortgageLine Adviser will learn everything they need to know about your own unique circumstances, so that you can benefit from the best possible mortgage rate and lower repayments.
We could potentially save you tens of thousands throughout the term of your mortgage.
That’s money that is better in your pocket.
Things you need to know
- As a Self Builder you can borrow a maximum of 90% of the Site Value and Construction costs. So you will need to have access to a 10% Deposit from savings or a family gift.
- You will also need to budget for Architects Fees, Construction Costs, Solicitors Fees, Stamp Duty and Moving in Costs.
- You will need to satisfy the mortgage lenders repayment capacity requirements. For example, you will need to show a six month history of regular savings and or rent payments to show affordability.
- Regular employed or self employed income. If employed you will need to show 3 months payslips and if self employed your most recent two years tax returns.
Get Advice
Not every mortgage application is the same and that’s where MortgageLine can help. We will take the time to understand your own unique situation and explain your options.
Our Mortgage Advisers are fully qualified and experienced. We have seen every type of mortgage application over the years and will be able to put you on the path to a successful mortgage application.
Our Mortgage Calculators will help you get started, however unless you are a personal finance expert you will need help making the important decisions.
That is where we come in. Our expert Financial Advisers will manage your mortgage application from start to finish.
Self Build FAQ
How much can I borrow for my self build?
A general rule of thumb is that you can borrow up to 4 times your gross annual income within the Central bank rules. The max mortgage amount will also take into account the overall cost of construction and the completed property value. MortgageLine will help you get your head around what is possible.
How is the mortgage drawdown?
When self building a home you do not need all the money up front. You can draw down the mortgage in stage payments as the work is done. This means you only borrow what you need when you need it and this keeps the monthly payments lower while the property is under construction.
What other expenses do I need to think about?
When you build a new home, you will also need cash to fund additional costs such as the following:
Mortgage protection (life cover) and home insurance – we can arrange this for you and your mortgage adviser will be happy to help and provide advice on costs.
Valuation fee – The mortgage lender will require a local valuer to value your new home. The mortgage valuer will initially estimate the finished property value and then they will also visit the property when it is fully complete. Mortgage valuations fees are approx €150.
Solicitor Fees – your solicitor will register the property and manage the drawdown of funds from the mortgage lender. MortgageLine will be on hand to help too.
Architect / Engineer fees – you will no doubt need an Architect to draw up the plans and seek planning permission.
Stamp duty – Log on to revenue.ie for the latest stamp duty rates for self builds.
Moving in costs – you will need a budget for decorating and furnishing your new property
Who qualifies for a self build mortgage in Ireland?
To qualify for a self-build mortgage in Ireland, applicants must meet the following criteria:
- Applicants must be at least 18 years old to be eligible to apply for a self-build mortgage.
- The maximum repayment term for a self-build mortgage is up to 35 years. The exact term offered will depend on the applicant’s age at the time of application and their financial circumstances.
- The mortgage must be secured on the property being built. This means that your property will serve as collateral for the mortgage. The mortgage agreement will be secured either by a mortgage or a right related to residential immovable property.
- Life insurance and home insurance are mandatory. Life insurance ensures that the mortgage can be repaid in case of the borrower’s death, while home insurance protects the property against damage or loss.
By meeting these criteria, applicants can pursue financing for their self-build projects, ensuring they have the necessary support to complete their new home construction in Ireland.
It’s important to check in with your MortgageLine adviser as early as possible to make sure you know exactly what documents are required for a self build mortgage application and to make sure you get the best possible mortgage approval for you.
Apply online today and you will get your own dedicated Mortgage Expert to guide you and make sure the mortgage part is the easy part of your self build project.
Tax Considerations and Self-Build Regulations in Ireland
Tax Considerations
1. Stamp Duty: When purchasing land or property in Ireland, you may be subject to stamp duty. However, if you are a first-time buyer of residential property and meet certain criteria, you may be eligible for a reduced rate or exemption. It’s essential to understand the current stamp duty rates and any applicable exemptions before proceeding with your self-build project.
2. Value Added Tax (VAT): VAT applies to most goods and services in Ireland, including construction and building materials. However, for self-build projects, you may be eligible for a VAT refund on certain qualifying expenses. Understanding the VAT rules and reclaim process can help you maximize your savings and manage your project budget effectively.
3. Capital Gains Tax (CGT): If you decide to sell your self-built property in the future, you may be liable for capital gains tax on any profit made. However, certain exemptions and reliefs may apply, particularly if the property is your primary residence. It’s advisable to seek professional tax advice to understand your CGT obligations and potential reliefs.
4. Property Tax (Local Property Tax): As a property owner in Ireland, you are required to pay local property tax annually. The amount payable is based on the market value of your property and is calculated by the local authority. Understanding your property tax obligations can help you budget effectively for ongoing homeownership costs.
Self-Build Regulations
1. Planning Permission: Before commencing any self-build project in Ireland, you must obtain planning permission from the local planning authority. This involves submitting detailed plans and specifications for approval, ensuring compliance with local zoning regulations and building standards.
2. Building Regulations: Self-build projects in Ireland are subject to strict building regulations aimed at ensuring safety, accessibility, and energy efficiency. These regulations cover various aspects of construction, including structural integrity, fire safety, insulation, and ventilation. Compliance with building regulations is mandatory, and failure to adhere to them may result in fines or delays in project completion.
3. Building Control Regulations: In addition to building regulations, self-builders in Ireland must comply with building control regulations, which require the appointment of a competent builder or construction professional to oversee the project. This appointed certifier is responsible for certifying compliance with building regulations and ensuring that the completed property meets the required standards.
4. Energy Performance Requirements: Energy efficiency is a key consideration in self-build projects, with strict energy performance requirements in place to promote sustainable construction practices.
Marcin Trawinski2024-06-20I would like to say THANK YOU to all mortgage line Team especially to Kevin Fitzharris for profesionalizm and support in buying my first home.
LITTY RENJU2024-06-13We are very impressed with the service provided by Billy Dore . Billy found a mortgage product with a competitive interest rate that suited our needs. His dedication and expertise were evident throughout. He also provided detailed instructions, chased the conveyancer, and kept us updated with clear timelines. They made the process swift and stress-free, which we needed. We highly recommend The Mortgage line for their outstanding service. Thank you, Billy Dore and the entire team.
Cristina Guja2024-05-29So happy working with them, our broker was Mihaela Cordos , she is so talented and helps us with all queries, thank you 😊
FARHAN SIDDIQUI2024-05-29Thank you so much to the MortgageLine team, and especially to Mayur, for facilitating the mortgage and other insurances for my house in Lucan. Mayur has been very patient and professional in answering my novice questions and he always made sure that I understood the details correctly. I wish all the best to you and your team.
Rohit Chanan2024-05-29Can’t thank enough. Mayur had been really helpful from start to end. Entire process got completed within 4-5 weeks time. At every step I had received a call from Mayur to go over the mortgage journey. It was worth every single penny spent and will be coming back should I need to switch the mortgage in the future. Thank you Mayur and Mortgage line for all your support!
Julien Lazare2024-05-21Kevin and his team at Mortgage Line provide a service that is so good, I almost want to start another mortgage. Jokes aside, I highly recommend them to anyone looking for professional advice when applying for a mortgage.
Faith Kelly2024-05-14I cannot recommend the team at mortgage line enough. Jan Pawel Wejs looked after me throughout my mortgage switching journey and he made the whole process so much easier and stress free. He is professional , friendly and highly efficient and will recommend him and the team to friends. Thank you Jan , keep up the super work!! Serena Keating
Guru vidhya2024-05-09Jan Pawel from mortgaeline really helped us to buy our new house in a smooth way which I never imagined would happen. Thank you Jan we had very good and positive experience throughout the process. My best wishes for you and your whole team.
Stephen Madigan2024-05-08I have been a client of mortgageline for the past couple of years since I was going buying a house to starting a self build The staff are very friendly and respond quickly to any questions I was able to get AIP quickly for all mortgages The only negative thing I can say is that the self build mortgage took around 6 months to reach the loan offer stage and I am still unsure where the source of the delay is… Apart from the is hiccup I got the highest mortgage possible as a single person and was given mostly good advice throughout
ayeecha naseem2024-05-07Mortgage line is for sure better than 5 star service. It would be hard for anyone to believe that from application submission to approval it took me 8 working days in total all due to continuing efforts of Kevin. He’s Definitely one person I would remember always for making my 1st home mortgage approved all according to my plans. Thanks a lot, it’s highly appreciated and recommend.
Our Mortgage Calculators
Input your details, and you’ll receive a clear breakdown of your potential expenses, helping you plan your budget confidently.
How Much Will It Cost?
Our highly accurate mortgage amount calculator helps you determine the maximum loan amount you will qualify for based on your income, debts, & other financial factors.
How Much Can I Borrow?
Our eligible mortgage amount calculator is designed to give you a clear picture of your borrowing potential. Use this calculator to move forward in your home-buying process.
