Selfbuild Show Dublin is the ultimate showcase for people who are building, extending, improving or simply decorating their home. Visitors are presented an abundance of ideas, inspiration and advice via 1-2-1 Clinics, Theatre talks and hundreds of local exhibitors.
Mortgage123 was one of the exhibitors at the show and we got a chance to meet with people looking to build their own home, or making home improvements.
Sean Corbett of Mortgage123 presented on the Mortgage process for Self-builds at the Selfbuild Show, and you can listen to the presentation here. We summarized the most frequently asked questions by show visitors we got to talk to over the weekend.
1. Can I apply for mortgage approval without planning?
Yes, you can apply for a mortgage, but how the application is processed will be specific to the lender, and not all lenders will issue mortgage approval without planning permission in place.
2. Can I get 100% of the build cost?
Yes, but this depends on many factors such as the value of the property, the value of the site, whether or not some or all of the site cost is to be included in the mortgage, etc.
3. Do I need to use a building contractor, or can I use a direct-labour approach?
It is your choice on how you want to get your home built. You will need appropriate professionals to sign off on projected build costs and stage completions. Your level of contingency funding may need to increase with direct-labour to account for a slightly greater chance of budget overspend.
4. How long do I have to complete the build?
This is specific to the lender, but two years would be a usual time frame to have in mind.
5. Will I have to sell my current home before my new house is ready?
This depends on your overall financial circumstances. Mortgage123 can help you identify this aspect of your mortgage early in the process.
6. What is the stamp duty requirement?
Your solicitor will advise you on stamp duty for your particular project as there are circumstances when this could be different to the usual 6% of site cost.
7. What documents do I need to get approval?
You would need as a minimum an OSI map and the following attached in our checklist.
This blog post is contributed by Nicole Dundon, Mortgage Advisor at Mortgage123.