Buying a house that needs renovations can be a smart way to get better value and create a home that suits your needs. However, funding those renovations is often where buyers run into uncertainty, particularly when mortgages are involved.

In Ireland, there are a few different ways to pay for renovation works. Some buyers take out a personal or credit union loan after completing the purchase, while others prefer to save and carry out improvements over time.

A third option is to include the cost of renovations as part of your mortgage, which is often the most efficient route if you qualify. Therefore, we will review this option in this blog post

Which option is available to you largely depends on one key factor: whether the property is considered habitable.

1. Is the Property You are Buying Habitable?

Your renovations funding options will largely depend on the condition of the property you are intending to purchase. This is one of the most important factors lenders consider.

A property is typically considered habitable if it has:

• A working kitchen
• A functioning bathroom
• Heating
• Running water

If these basics are in place, the property is usually considered habitable. If not, lenders will typically require that renovation works are included in the mortgage from the outset – purchase and renovate mortgage type. You won’t be approved for a standard mortgage on a property you can’t live in with plans to fix it later.

2. Funding Property Renovations with a Mortgage?

Mortgage loans tend to be way cheaper than personal loans for doing house renovations.

How much can I borrow for house renovations?

You can borrow up to 90% of the purchase price and up to 90% of the renovation. Both the additional borrowing and initial mortgage are subject to lender’s income multiples (4 times for first time buyers and 3.5 times for second time buyers maximum based on income to cover both loans).

3. Understanding the Types of Renovations

When applying for a mortgage with renovation funding, lenders distinguish between non-structural and structural works. This distinction is important because it affects how the loan is assessed and how funds are released.

Non-Structural Works – House Renovations

Non-structural renovation works are normally cosmetic such as Kitchen Upgrade, New Widows, New Bathroom, New Doors, etc. However, you are buying a property you can live in or needs something minor like a kitchen to make it habitable.

To make this work, a mortgage lender must know in advance of the type of work that you plan on doing. This is part of the mortgage application. It involves a two stage valuation process which must be carried out by the same valuer. The first valuation will give a current value assuming the works are carried out.

The second valuation confirms the works are done to the property. The property value must increase as a minimum in line with what you are spending on the renovations.

The tricky bit

The monies for the renovation will not be released until the works are done. This is called a ‘hold back’ which means you will have to fund any upgrade up front. You then get the money back from the lender once works are complete and the valuer has confirmed same.

Structural Works House Renovations

Structural works mean that something is being removed or added to the house, such as an extension. Unlike non-structural renovations, you will have to employ the service of an architect/engineer to oversee the works and approve the costings. Again, this is to be included in the initial mortgage application. If planning permission is required, this needs to be in place or the lender needs to be made aware that you will be applying. Furthermore, you should be starting works within 6 months of initial mortgage drawdown.

How do they work?

There is a two-stage valuation process, which must be carried out by the same valuer. The first valuation will give a current value based on the purchase price and a valuation assuming the works are carried out.

The second valuation confirms the works are completed. With these type of works, a lender would expect the property to increase in value at least 20%. The money to cover the works is again held back until works are done.

However, for large renovations, the money is released in stages once your engineer signs off on the work. For example, you may get the money for the foundations on stage one, walls and roof on stage two, etc. You would need to fund each stage in advance or ask your builder to wait for monies to be released by lender.

How Much Can I borrow for structural works?

If you are first time buyer, you can borrow 90% of the purchase price and up to 90% of the works subject to an uplift in the valuation which will leave at least 20% equity in property.

Purchase and Renovate Example

Buying a house for €100,000 – Borrow €90,000

House renovations cost €50,000 – Borrow €45,000

Total borrowing €135,000

The property would need a final valuation of €168,750 (€135,000 plus 20% increase in value).

If you are a second time buyer, you can borrow 90% of purchase price and 90% of cost of works. Both the additional borrowing and initial mortgage are subject to lender’s income multiples (3.5 x times maximum based on income would need to cover both loans or you may get an exception if available).

4. Government Grants Available

In Ireland, you can combine grants for refurbishing a property with energy upgrade supports to significantly offset renovation costs. In 2026, the available funding has reached record levels, with some homeowners eligible for over €100,000 in combined support.

Renovation Grants for Vacant & Derelict Properties

The Vacant Property Refurbishment Grant (Croí Cónaithe) is the primary scheme for bringing empty buildings back into use.

• Vacant Property Grant: Up to €50,000 for properties vacant for at least two years and built before 2008.
• Derelict Top-Up: An additional €20,000, bringing the total to €70,000, if the property is structurally unsound or on the Derelict Sites Register.
• Offshore Island Bonus: Grants are 20% higher for island properties, reaching up to €84,000 for derelict homes.
• Expert Advice: You can receive up to €5,000 for expert conservation advice if the building is a traditional or historic structure.
• Above the Shop: A new 2026 expansion offers up to €135,000 to convert vacant spaces above shops into multiple homes.

SEAI Energy Upgrade Grants

You can apply for SEAI Individual Energy Upgrade Grants alongside the refurbishment grant, provided they fund separate works. Significant increases were introduced in early 2026:

• Heat Pump Systems: Up to €12,500 (including a new €4,000 Renewable Heat Bonus for switching from fossil fuels).
• Insulation: Up to €2,000 for attic insulation and €8,000 for external wall insulation (detached homes).
• Windows & Doors (New for 2026): Standalone grants of up to €4,000 for energy-efficient windows and €1,600 for doors.
• Solar Panels: Up to €1,800 for solar PV systems.
• One Stop Shop: For a “deep retrofit” to a B2 rating, you can receive up to 50% of total costs upfront.

FAQs: Buying a House that Needs Renovations