Self Build Mortgages

A self-build can be daunting but at Cleere Mortgages we have a special place in our hearts for self-builders. We have a selection of lenders that will support those building their own homes.

Building your own home gives you a huge amount of flexibility - it lets you choose a design that precisely suits your needs now and into the future. You can decide on layout, room sizes and design features to suit your budget.

Unlike a standard mortgage, a self-build mortgage is typically drawn down in stage payments, spread over a certain number of months depending on the length of the build period.

How much money can I draw down for my mortgage?

Maximum mortgages are generally 3.5 times gross annual income and 70/80 per cent of the property value (90 per cent of the property value for first-time buyers). In the case of a self-build, the property value is typically calculated as either the site purchase cost (if applicable) plus build costs or the final valuation upon completion. Typically, the lower of these two figures applies. It is also prudent to have an extra 10 per cent of the total cost to cover unforeseen expenses, contingences, cost overruns and furnishings.

Do I need to be good at building Or can I just be a fan of Dermot Bannon??

No, you don’t need to have building expertise to apply for this mortgage. There’s a couple of ways to manage your dream build and this may be influenced by the type or scope of your project. You may decide to employ a Building Contractor or Project Manager / Structural Engineer to coordinate the project, or you can choose to take on this role yourself. Taking on the role will save you money but be prepared to devote a significant amount of time and energy to the project!!

Some Tips for Self-Build:

• Contact your local Broker (Cleere Mortgages) to see what you qualify in regard to your build

• Discuss with your architect a good set of working drawings & detailed specification

• Work out a realistic programme for the build

• See what the build will cost by getting someone to price the drawings

• Choose sub contractor’s that have been recognised & registered

• Be aware of lead times for windows etc

• Try to visit the site to ensure things are running smoothly

• It is going to be stressful so be prepared

• Keep control of the budget as some savings can be made

• Be aware of new building regulations

• Try appoint a project manager, if you can afford it!

 Talk to us about Self Build Mortgages