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Site as collateral/deposit

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  • 18-02-2022 12:59am
    #1
    WhiteWalls
    Registered Users Posts: 945 ✭✭✭


    If one buys a site for say 50k and has no savings then whatsoever, can they get a mortgage on the weight of what the site is worth?


    Basically can the site be used as a deposit?


    Hope that makes sense.



Comments

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    #2
    Emma2019
    Registered Users Posts: 414 ✭✭Emma2019


    I've seen this question asked before and the answer has been no, but I've no personal experience to confirm.

    Is it the site you intend building on? If not then why not sell it?



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    #3
    Former Former Former
    Registered Users Posts: 5,559 ✭✭✭Former Former Former


    https://www.boards.ie/discussion/2058233586/site-as-collateral-deposit

    Assuming this is the site on which you plan to build your house, yes, but it will depend on value of the site vs cost of the build.



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    #4
    Gru
    Registered Users Posts: 1,141 ✭✭✭Gru


    It also depends on the bank, 7 years ago only 1 of 4 would for us, but with no savings what so ever they'll not lend as you need to be able to in advance cover the costs of all fee's, solicitors, costs to do with purchase...etc could be 5k plus



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    #5
    ec18
    Registered Users Posts: 2,702 ✭✭✭ec18


    if you're planning on using the site to build on then yes the site can be used as the deposit for mortgage purposes. If it's an asset you want to keep and use as security while buying somewhere else then no, as you'd be looking for a 100% mortgage on the other property.



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    #6
    silver2020
    Registered Users Posts: 2,045 ✭✭✭silver2020


    If you bought the site for 50k and were able to show that you saved to get the 50k, it would not be a huge issue.


    If you were gifted 50k to buy the site you would not be able to show a savings record, so your application would fall on that requirement.



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    #7
    skimpydoo
    Registered Users Posts: 4,870 ✭✭✭skimpydoo


    Oops



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