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Mortgage and Finishing House

  • 07-07-2014 3:25pm
    #1
    Tefral
    Registered Users, Registered Users 2 Posts: 4,396 ✭✭✭


    I hope i'm putting this into the right section.

    Say i'm buying an unfinished house with cash. Can I go to a bank and borrow the cost to finish that house via a Mortgage.

    I'm in the trade myself so I am happy with all the risks that come with buying such a property. I can even do alot of the work myself bar the 1st and 2nd fix electrical and plumbing, I would be using most of my cash to buy the house and as a result would need money to finish it.

    I spoke with AIB awhile back and they are willing to give "Renovation Mortgages" for 75% of the total. (reason being is that they don't recon that everything adds value to the house). However since then my circumstances have changed. Back then I was asking them for the mortgage to both buy and finish the house. Now I have enough cash to buy it myself.

    If I went to the bank and used the house as collateral and I also had the 25% of the renovation costs saved would they give me a mortgage for that?

    I know there is all the usual variables like credit history, repayment capacity etc but i've already been pre-approved for far in excess of what I need for if I wanted to buy anyother finished house at 92%.

    I've had the house valued as is, and what i'm buying it for is less than half that valuation. I'm just hoping the risk is so small for the bank they might give me the Mortgage.


Comments

  • #2
    Johnnyhpipe
    Closed Accounts Posts: 748 ✭✭✭Johnnyhpipe


    I'm not being smart, but you won't get the answer here. You need to speak to the bank.

    Sounds like a reasonable approach though IMO.


  • #3
    Tefral
    Registered Users, Registered Users 2 Posts: 4,396 ✭✭✭Tefral


    Johnnyhpipe wrote: »
    I'm not being smart, but you won't get the answer here. You need to speak to the bank.

    Sounds like a reasonable approach though IMO.

    Ya it was more of a longshot posting here really, was looking for an informal "Something like this happened to me" kinda thing.


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