Self-Build Mortgage Donegal

What is a Self-build mortgage for Donegal Homeowners?

Self-build mortgages are a particular kind of lending created for those who want to build their own homes. A self-build mortgage normally operates as follows in Donegal, Ireland:

  1. Application: To begin, submit an application to a lender for a self-build mortgage. Often, as part of the application process, you are asked for details on your earnings, living expenditures, and construction costs etc.
  2. Approval: The lender will normally issue an Approval in Principle based on the amount the application was for. This sum is often calculated as a percentage of the overall construction cost.
  3. Drawdowns: As the construction progresses, you can ask the lender for drawdowns. These are payments that are provided to you over time depending on how the construction is coming along. You may get a drawdown, for instance, when the foundation are in, another when the property is an roof level, and so on.
  4. Repayment: The self-build mortgage will normally change into a standard mortgage after the build is finished. After that, you’ll start making the full repayments.
Self Build Mortgage Donegal House Plan

It’s important to keep in mind that self-build mortgages are more complicated than standard mortgages because the lender is taking on more risk with them. To get the fbest self-build mortgage for your circumstances, it’s crucial to shop around and compare several lenders. We would recommend speaking with a mortgage broker who will help with this and will offer advise on all the options available to you

Self-Build Mortgages vs Regular Mortgages in Donegal, Ireland

Regular mortgages and self-build mortgages are two distinct loan forms that are used for various purposes in Donegal, Ireland.

A loan type known as a self-build mortgage is exclusively for borrowers who want to build their own home. 

Because a self-build mortgage is often disbursed in stages as the construction progresses, the borrower only has to pay interest on the amount they have actually pulled down. Self-build mortgage applications are more complicated than standard mortgages, so use an advisor who has experience in dealing with self-build mortgage

Contrarily, a normal mortgage is a loan taken out to purchase an existing home. In the case of a conventional mortgage, the loan is normally released in full at the start of the loan term, and the borrower is responsible for paying interest on the entire amount right away.

Both self-build and normal mortgages can have fixed or variable interest rates, and depending on the lender, different terms and conditions may apply. So, do seek with a mortgage advisor or mortage broker 

The objective of the loan is the primary distinction between a self-build mortgage and a normal mortgage. Whereas a standard mortgage is used to buy an existing house, a self-build mortgage is used to fund the building of a new home. The terms and conditions of the loans can also vary.

Mortgage Application Requirements Checklist

The following may be required of all candidates when making a mortgage application.

This list is simply meant to serve as a guideline, and various lenders might not need everything on it.

  • Colour Copy of Photographic ID (originals or certified copies)
  • Address verification (household bills)
  • Proof of PPSN
  • Most recent 6 months’ bank account statements (for all bank accounts)
  • Most recent 6 months’ savings account statements
  • Most recent 6 months’ credit union statement (if any)
  • Last 6 months’ credit card statements (if any)
  • 12 months’ statement on all loans (if any)
  • Latest annual statement on all Mortgages (if any)
  • Completed gift letter, if applicable (template available from your broker or lender)
  • If you live or have worked overseas you will need a credit report from that country
  • If you have a bank account in another country (other than Ireland) you will need a credit history report from that country
  • Marriage Cert (if applicable)
  • Copy of your Divorce or separation agreement (if applicable)

If Employed

  • 3 recent payslips
  • Most recent Employment Detailed Summary (Available from your Revenue online account)
  • Salary Cert (available from your broker or lender)

If Self Employed

  • 2 years’ accounts (if you have 3 year’s, it is even better)
  • 2 years’ revenue notice of assessment as above, if you have 3 year’s
  • 2 years’ form 4 & chapter 11 (again 3 years if available)
  • Confirmation from your accountant that all taxes are up to date
  • Confirmation of tax clearance cert
  • Most recent 6 months business bank account statements (for all bank accounts)
  • 12 months’ statement on all business loans

For the Building

  • Break down of build costs (template available from your broker or lender)
  • Copy of Architects PI cover
  • Completed gift letter if site was gifted (template available from your broker or lender)
  • Copy of the site map, OSI Map with the subject site marked off.

The list above is simply intended as a starting point; it is not an extensive list. Lenders can request more or fewer details than those listed above. You won’t need to produce bank accounts or anything else if you borrow from the lender with whom you bank.

What a lender must be aware of when it comes to your Mortgage Application.

Mortgage applications are assessed by lenders in several ways. When determining how much you can afford to borrow and whether you will be able to make mortgage payments, the lender will consider the information you submitted with you application.

The lender’s assessment must be in accordance with the Central Bank of Ireland‘s regulations, which set restrictions on mortgage lending in the Irish market. These restrictions, which apply to loan-to-value and loan-to-income ratios, are re-evaluated annually.

The lender will consider the following additional factors before deciding:

  • Your age, including when you plan to retire, may have an impact on the repayment term that is best for your circumstances.
  • Your credit history, past loan repayments may have an impact on how lenders determine your capacity to make future repayments.

Possible Mortgage Relief which may be available to you:

There are numerous mortgage reliefs that may be offered for self-build mortgages in Donegal, Ireland. Here are several examples:

Help to Buy (HTB) incentive

If this is your first home, you are only eligible for the Help to Buy (HTB) incentive. This incentive will help you with the deposit you need to either build or buy a new home as a first-time buyer or self-builder. You receive a refund of the income tax and Deposit Interest Retention Tax (DIRT) that you had to pay over the preceding four tax years. The help to Buy scheme is available if you are a first time buyer, buying a new property as your primary reidence or self builder, building your primary residence.

Home Renovation Incentive (HRI)

The Home Renovation Incentive (HRI) is a tax relief program provided to homeowners making modifications or repairs to their homes. The program offers a tax deduction on eligible expenses up to a total of €30,000.

Capital Allowances

Capital Allowances are tax credits that self-builders may use to offset the cost of specific things like fixtures and building supplies.

Funds or Grants from Local Governments

In Donegal, certain local governments may provide subsidies to self-builders for specific sorts of projects, like energy-efficient renovations or accessibility improvements.

Make Sure to Find A Mortgage Guidance

When looking for a Mortgage in Letterkenny, Donegal, Sligo, Leitrim, Mayo, Galway or anywhere in Ireland generally, engaging a mortgage broker might provide a number of advantages and valuable benefits. Some benefits of engaging a Mortgage Broker or Mortgage Advisor are: offering access to a wide range of lenders, helping you save time and effort, providing expertise and knowledge, negotiating power, and personalized mortgage service.

Make an appointment with one of qualified mortgage advisors as you seek to find a mortgage in Donegal. Speak with us right now. We are available to assist you with your Mortgage concerns and worries. We are happy to answer your questions. We advice,  first-time buyers’ mortgages, re-mortgage or switcher mortgages, self-build mortgages, investor or holiday home mortgages, and more. Contact findamortgage.ie in Letterkenny, Co Donegal, or by phone at 074 91 03938.

The Central Bank of Ireland regulates Mortgage Advisors and Mortgage Brokers in Ireland.

Allied Irish Banks (AIB)
Bank of Ireland (BOI)
Finance Ireland
Haven Mortgages
EBS Building Society
Avant Money
ICS Mortgages
Permanent TSB
Excellent
Based on 108 reviews
dana doherty
dana doherty
2023-02-13
Pascal, Tanya and the team were so helpful throughout our mortgage process from the initial meeting to final approval. They were very helpful and friendly. A pleasure to work with.
M C.A.
M C.A.
2023-01-30
Paschal is not only an adviser but a good person. He has helped me set up my mortgage 15years ago and he’s still around giving advice. He’s very trustworthy. Thank you Paschal and God bless you for all your good deeds.
Marie Wilson Burns
Marie Wilson Burns
2023-01-18
Pascal & the team are excellent to deal with - highly recommend
Paul Magee
Paul Magee
2022-12-15
Excellent service from Pascal and the team. For a first-time buyer, his mortgage advice and expertise took the hassle out of the entire process. Highly recommend.
Meanit Web Design Agency Donegal and Dublin
Meanit Web Design Agency Donegal and Dublin
2022-10-14
Independent, clear, honest, friendly, trustworthy - we recommend Pascal Curran and the team at Advice First to our clients in Donegal, friends and family. Just simply explained, professional, experienced financial advice to suit your specific needs.
james m
james m
2022-09-28
Pascal gives good unbiased financial advice. I'd recommend him over many of the other "advisers" available.

Warning: If you do not keep up your Self Build Mortgage Donegal repayments you may lose your home