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How do I get a loan to buy a site?

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  • 07-02-2015 12:15am
    #1
    Rackstar
    Registered Users Posts: 1,347 ✭✭✭


    I want to buy a site that has planning permission. I have roughly half the cash saved. I don't want to get a mortgage. I'd prefer to get a loan, buy the site, pay back the loan, and then get a mortgage and build.

    What type of loan do I need? Who offers loans to purchase a site?


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    #2
    phormium
    Registered Users Posts: 3,304 ✭✭✭phormium


    You are just looking for a straight forward personal so, I would start with your own bank. However the rate will be a lot higher than a mortgage would be, might make more sense to get a mortgage on it if you can and then just consolidate it into the house mortgage when you build. Trouble is for a mortgage the lender would probably put a time limit on you starting building. You could also try a credit union if you are a member of one.

    How long is it going to take you to pay back the site loan? Will the planning permission have run out before that, that could be an issue if it does. Are you sure you will qualify for the mortgage you need to build the house too before you sink all your savings into the site purchase.


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    #3
    _Brian
    Registered Users Posts: 18,501 ✭✭✭✭_Brian


    Credit union might be suitable for this.


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    #4
    Rackstar
    Registered Users Posts: 1,347 ✭✭✭Rackstar


    It'll take a year and a half to pay back the loan for purchase of the site. Planning doesn't expire until 2018.

    Do credit unions require you to keep your savings on deposit as shares and then get a loan for the full amount of the purchase? For example €50k savings, site costs €100k and the CU loan you €100k and leave your €50k on deposit?


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    #5
    phormium
    Registered Users Posts: 3,304 ✭✭✭phormium


    Credit Unions differ in their policies, ideal would be if you were able to get it as a secured loan secured on the site, that way you would benefit from lower rate and be able to use your savings.


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