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FTB Self Build Mortgage

  • 23-02-2010 10:57am
    #1
    Himselfe
    Registered Users, Registered Users 2 Posts: 140 ✭✭


    I know many lenders are tight with thier mortgages at the moment for even the simplest of purchases. With this in mind does anyone have any opinions on the likelihood of a lender giving a self build mortgage to a First Time Buyer couple?

    Both Public Servants circa €40k each

    Savings of €50k

    Total cost worked out at around €250k (including site and build) so would be looking to borrow €200k

    The site is in Dublin (Fingal), in a nice area and the build would be around 1700 square feet.


Comments

  • #2
    seamus
    Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    Assuming that you've no other significant outgoings, I'd be surprised if you didn't get that mortgage.

    Between you, you've a net income of roughly €50k pa or €4,100/month.

    Use this calculator to get some idea of repayments and stress test your repayments up to an interest rate of 6 or 7%.
    http://www.drcalculator.com/mortgage/ie/

    So for example, €200k over 30 years @ 4% = €950/month, which is about 23% of your monthly income.
    Up that to 7%, and the repayment becomes ~ €1330/month or 32% of your net income.
    Which is still within tolerable limits.

    The only problem with a self-build is that the bank may apply some very strict rules on you - mindful that self-builds often run over time and over budget.


  • #3
    Himselfe
    Registered Users, Registered Users 2 Posts: 140 ✭✭Himselfe


    seamus wrote: »
    Assuming that you've no other significant outgoings, I'd be surprised if you didn't get that mortgage.

    Between you, you've a net income of roughly €50k pa or €4,100/month.

    Use this calculator to get some idea of repayments and stress test your repayments up to an interest rate of 6 or 7%.
    http://www.drcalculator.com/mortgage/ie/

    So for example, €200k over 30 years @ 4% = €950/month, which is about 23% of your monthly income.
    Up that to 7%, and the repayment becomes ~ €1330/month or 32% of your net income.
    Which is still within tolerable limits.

    The only problem with a self-build is that the bank may apply some very strict rules on you - mindful that self-builds often run over time and over budget.


    Thanks for that. Yes, I agree. They shouldn't have too much trouble. They're just worried that because there is even a little risk involved the banks wont even look twice at them.

    I suppose all they can do is ask and find out, eh?


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