Self Build - Mortgage

D

Draff

Registered User
Messages
28
Hi,

Applying for a mortgage for self build. To what level of detail do the mortgage company need me to go into with regard to costs?

As always, if somebody else can post their example it will be a great help.. :)

Cheers,

D
 
Thanks Clubman. As far as I can see, none of these give me the actual breakout that I need..

Anybody?
 
If you dont have a realistic budget then why should a bank give you any money at all?

Why dont you get some builders to tender for the construction (im assuming you have a set of detailed drawings) - this will provide you with a full breakdown that you can bring to the bank.

You can then either do the job yourself (direct labour) or contract with the lowest priced builder.
 
I have my costing, all I want to know is to what level of detail I need to give to the mortgage company.

Is this detailed enough?

Site clearance
Foundations
1st Floor Build
Precast Flooring
2nd Floor Build
Roofing
Windows
Doors
Stairs
Heating
Electrical
Plumbing
Waste Water Treatment
Internal Plastering
External Plastering and Stonework
Painting
Kitchen and Appliances
Bathroom Accessories
Landscaping
 
the documents a mortgage lender requires for a self build are :

confirmation site is owned by you or confirmation of site purchase price
copy of planning permission
Architects/engineers letter of supervision ( lender will supply this)
Quote for cost of construction. ( your own estimated cost will not suffice)

you best approach is to approach a mortgage lender for Approval in principle , you will then know how much you qualify to borrow, if this covers your budget well and good, if not , back to the drawing boad and reduce costs, ie landscaping, bathroom accessories.
mortgage lenders will typically, subject to income, approve you for 90% of the total cost to purchase site and construct property. .. if you own the site then you can borrow more for construction as the total mortgage amount relative to the value on completion will be lower than if you needed to borrow to
purchas site also.
 
the bank will want a HB 47 form (Homebond) from your builder - alternatively Premier Guarantee cover. If you are going self build then you wont be able to get these covers so you will need certs from the supervising Architect and/or Engineer - have you factored in these professional costs?


Also, the local authority will charge you a development contribution (varies depending on where in the country you are building). You will also have to pay capital contributions to utility companies (ESB, Eircom) as well as connection fees for your water supply.

Do you have any furniture included in your budget?
Do you have a contingency sum in case of unforeseen problems?
Have you factored in Public Liability insurances if you are going self build?

As I intimated earlier, its not gonna cost you anything to get a firm all-in price from a builder and if I was your banker thats the very least I would expect in order to get comfortable with providing you with this kind of draw down facility.
 
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