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FTB mortgage when building work needed

  • 24-02-2019 1:55pm
    #1
    SwordofLight
    Registered Users, Registered Users 2 Posts: 350 ✭✭


    Hi everyone

    Any tips on getting a mortgage approved to buy a house that needs work? There's running water and elec but it will need cleaning up and some structural changes inside.
    I rang the bank who said I would need to provide costings before they would consider a mortgage, and if there was any mention of development potential they wouldn't lend.
    Of course now the problem is if I get a builder in to quote for materials and labour or whatever, its probably going to push the cost of the whole thing beyond what I can afford. Whereas I would actually be happy to move in and clean it as well as paint it etc on my own and get the work done in time when I have the money.
    But how do I pitch that to the bank. Do I need a mortgage broker?


Comments

  • #2
    L1011
    Registered Users, Registered Users 2 Posts: 71,188 ✭✭✭✭L1011


    You'll need to convince them the work is not severe and that you can fund the lot from earnings over mortgage payments. Broker is unlikely to assist much here.

    The more dire the warnings in the estate agent ad the harder that will be (and is one reason why they seriously underplay this usually)


  • #3
    SwordofLight
    Registered Users, Registered Users 2 Posts: 350 ✭✭SwordofLight


    The facade looks fine but part of the inside is a horror show. The estate agent's opener on the ad is something along the lines of "calling investors for development opportunity."
    I want to make it a home.
    Would I need to provide costings before they'd send out a valuer or surveyor? Can I send a builder in to do up a quote? Or am i wasting my time.
    If I wasnt approved as a first time buyer would it be classed as a commercial mortgage?


  • #4
    bri007
    Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭bri007


    How bad is a horror show?

    I would get a surveyor out ASAP, considering now might be the worst time to get any work done on a house price wise, everything will be over inflated due to lack of builders and trades.

    Is the house habitable? Heating, light etc?

    If you can live in it, and it is structurally sound you may get away with it for a few years while you save up money to modernize it. Then the prices of building may have come down a bit. I got a builder out to look at some houses we were looking at, some in very bad condition and others. It so bad but on a whole the prices were crazy! Some builders priced so high that it was like they didn’t want the job.

    Your best bet is getting a surveyor, to see any major defects that could be too costly to repair.
    SwordofLight wrote: »
    The facade looks fine but part of the inside is a horror show. The estate agent's opener on the ad is something along the lines of "calling investors for development opportunity."
    I want to make it a home.
    Would I need to provide costings before they'd send out a valuer or surveyor? Can I send a builder in to do up a quote? Or am i wasting my time.
    If I wasnt approved as a first time buyer would it be classed as a commercial mortgage?


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