Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

FTB Self Build Mortgage

Options
  • 23-02-2010 11:57am
    #1
    Himselfe
    Registered Users Posts: 121 ✭✭


    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

  • Options
    #2
    seamus
    Registered Users 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.


  • Options
    #3
    Himselfe
    Registered Users Posts: 121 ✭✭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?


Advertisement