Self build mortgages in Ireland
If you dream of building your own home, a self build mortgage could help make it a reality. Here’s how they work, how much you can borrow, and what insurance you need.
What is a self build mortgage?
It’s a mortgage for people who are building their own home. Self build mortgages work differently to regular mortgages:
- With a standard mortgage for a ready built house, the money is released in one go
- With a self build mortgage, you draw down the money in stages - for each stage of the build
- You only pay interest on the amount you’ve drawn down from a self build mortgage, not the whole loan amount
How much deposit do you need?
This varies, but usually both first time buyers will need at least a 10% deposit.
For second time buyers, the maximum Loan To Value (LTV) available is typically 80% of the site value plus cost of construction or 90% of the valuation on completion (whichever is lower).
The deposit can depend on:
- The lender’s criteria e.g. the maximum amount they can offer you and their maximum loan to value percentage
- Whether you already own the site or need the loan to cover this too. If you own the site you may be able to use this as your deposit
What if you own the land?
If you’ve been given land or already own the site, you can use it as your deposit because it will be part of the overall value of the house when it’s built.
You’ll also need at least 10% of the total cost as a contingency for any unforeseen expenses.
How much can you borrow?
Lenders need to be confident that you can comfortably afford your mortgage, insurance, and bills each month. You’ll also need sufficient savings to cover any unexpected build-related expenses.
Work out how much you may qualify for with our How much can I borrow? calculator.
For a more accurate quote, speak to a lender to get a mortgage approval in principle.
How is a self-build mortgage assessed?
Lending is typically based on the projected valuation of the property once it’s fully completed, not just the construction cost or on how much you plan to spend.
Your lender will consider:
Importantly, lenders will usually lend based on the lower of the total cost or the projected value on completion.
What happens if the valuation is lower than your build costs?
If the projected valuation comes in lower than your build cost, you’ll need to fund the difference yourself.
This can sometimes happen with high-spec builds in rural areas, where construction costs exceed what comparable properties in the area are selling for.
In these cases, the valuation may not fully reflect your total spend, creating a potential shortfall.
It’s important to factor this risk into your budget planning before construction begins.
Who offers self build mortgages in Ireland?
These are the main lenders that offer self build mortgages:
Lending criteria differ between banks, and individual circumstances are considered, so take the time to talk to several lenders or a mortgage broker.
Do self-builders qualify for the same discounts and incentives?
In most cases, yes, although there may be specific requirements to qualify.
Green mortgages
Initially aimed at existing and new purchasers of energy-efficient homes, many lenders have expanded their green mortgage rate discount offer to include self-builds and structural renovations. You may now be eligible, provided you hold a proposed BER of A1–B3.
All new homes must meet current building regulations, including NZEB energy efficiency standards. Your projected BER will affect green mortgage eligibility.
Cashback
Most lenders offer self builders the same cashback incentives as other borrowers. Check the T&Cs carefully or talk to a broker before applying.
| Lender | Drawdown cashback | Monthly cashback | Additional info | |
|---|---|---|---|---|
| PTSB | 2% | 2% via Explore account | Green mortgages rates, various loan types | |
| EBS | Up to 3% | Not specified | 2% plus 1% in 5 years | |
| Haven | €5,000 | If stage payment drawdowns total is at least €250,000 on fixed rate | ||
| AIB | €3,000 switcher-only offer | Varies | Green mortgage rates, overpayments allowed | |
| Bank of Ireland | Up to 3% | Not specified | 2% plus 1% in 5 years. Requires 20% contingency; offers green fixed rates |
Some specialist lenders may offer interest-only mortgages for the first 12 months, to help keep costs down in the first year.
Compare mortgage rates & deals
Find a range of first time buyer and home mover mortgage deals in Ireland using our comparison.
Applying for a self build mortgage
The lending criteria for self build mortgages can be stricter than other types of mortgage.
This is due to costs and timeframes often being stretched and some projects not being completed - making them a high risk to lenders.
Employment checks are usually more stringent, and you’ll need proof of either:
- Your deposit contribution
- Ownership of the site for your new home (which may be used as your deposit)
Our guide Preparing for a mortgage application has some valuable tips and advice on the application process.
What documentation do you need?
Before your mortgage can be approved, you’ll need to provide your lender with some documentation including:
- Final grant of planning permission
- Site map
- Professional indemnity insurance and initial report from your Architect/Engineer/Surveyor
- Building plans and costings
- Initial valuation
The stages of the self build mortgage process
The number of ‘stage payments’ (when a payment is made to cover part of the build) is usually flexible based on your needs. For example, if you’ve already bought the site, you’ll skip the first stage.
There are usually between 4-6 payment stages. They may include:
- Buying the site
- Preparing the site and foundations
- Building the floor level
- Building the roof level e.g. the property’s frame or shell
- Finishing the property e.g. electrical wiring and plumbing, so it’s liveable
- Receiving the Certificate of Compliance and having the final valuation done
Before a payment is released, each stage of the build must be certified by an official certifier. Payments are requested each time via your solicitor.
Self-build stage payments explained
While stages can vary between lenders, most self-build mortgages follow a similar structure.
The table below outlines what each stage typically covers and what documentation or certification is required before funds are released.
| Stage | What it typically covers | What’s required before funds are released | |
|---|---|---|---|
| Site purchase | Buying the site (if applicable) | Signed contracts and valuation | |
| Foundations | Site clearance, groundwork, foundations | Architect/engineer certification | |
| Wall plate / Floor level | Structure up to ground or first floor level | Stage inspection & certification | |
| Roof level | Structure completed to roof level (shell stage) | Stage inspection & certification | |
| First fix / internal works | Windows, wiring, plumbing, plastering | Stage inspection & certification | |
| Completion | House finished and ready for occupation | Certificate of Compliance + final valuation |
Some lenders may retain a portion of the final stage payment until all compliance documentation, final BER certification, and insurance confirmations have been received.
Most lenders also expect the build to be completed within an agreed timeframe (often 12–18 months). If delays occur, you may need to seek approval for an extension.
What grants are available for self-builds?
There are government supports available to help you fund a self-build property.
They include reduced prices on regional sites, government-backed mortgages with reduced interest rates, help with deposit shortfall and tax relief.
Help to Buy (HTB) incentive
Self builds are included in the HTB scheme, but you’ll need to meet other criteria too:
- Be a first time buyer
- Build your new property by 31 December 2029
- Use the property as your main home for five years after building it
- Be tax compliant
The approved valuation of the property must not be over €500,000.
You’ll also need to use a Revenue approved developer and contractor.
If you qualify, you can claim up to €30,000 or 10% of the property’s completion value - whichever is lower.
Ready to Build Scheme
Under the Ready to Build Scheme, you can buy a site from a regional, local authority at a reduced price of up to €30,000 below the market value.
Sites can be preowned, or newly bought by local authorities, who will provide services like electricity, water and wastewater.
Criteria includes:
- The maximum discount is €30,000
- The site must be part of the scheme, in a regional town or village
- You must build a home on the site and live in it as your main residence
- You must apply for planning permission within three months of purchase approval and deposit payment
- You can not buy more than one site under the scheme
Get more information on the Ready to Build Scheme.
The First Home Scheme
The First home Scheme is a government-backed scheme to help first-time buyers buy or build a property.
The shared equity scheme pays up to 30% of your house price in return for a stake in your property. You can buy back the share if you can afford to, but you’re under no obligation to do so.
In the case of self-builds, your home must be:
- Built on a site that you own, or are purchasing
- as your Principal Private Residence
- Within the local authority property price ceiling for the property type
Read our First Home Scheme guide for more information.
Local Authority Home Loan
The Local Authority Home Loan is a government-backed mortgage with reduced interest rates, available to home purchasers and self-builders. The interest rates are fixed for the full term of the mortgage, so you have the same repayments for the lifetime of the loan.
With a Local Authority Home Loan for a self-build, it must be a new construction (i.e. you can’t apply if work has commenced). You must also comply to the Building Control statutory certification (you can’t opt out).
- If you have planning permission: the loan should not exceed 95% of the build cost and professional fees for fixed price contracts and 85% of build cost and professional fees for direct labour
- If you still have to purchase planning permission: the loan should not exceed 90% of the site cost, build cost and professional fees for fixed price contracts, and 80% of site cost, build cost and professional fees for direct labour
Other criteria include:
- You must be a first time buyer or a ‘fresh start’ applicant
- Have a gross annual income of less than €70,000 for single applicants and €85,000 for joint applicants
- Borrow up to 90% of the market value of the property you are building or buying
- Avail of a maximum market value, depending on where you are building.
- Have a satisfactory credit record
- Have a deposit of at least 10% of the property’s market price
Get more information on the Local Authority Home Loan
Self build insurance
You’ll also need to get self build insurance to protect your site and property from damage caused by fire, storm, and flood, as well as break-ins and theft.
If you manage labour for the build, it can also include liability against potential injuries on site.
Check that your lender doesn’t include this insurance for free before purchasing one yourself. Other types of insurance include:
Our guide: What insurance do you need with your mortgage? covers other types of non-compulsory insurance like income protection, serious illness cover and contents insurance.
If you’re unsure what insurance you need, speak to a financial adviser.
Do you have to pay stamp duty on a self build?
You do not pay stamp duty on the house you’re building; however, you do pay stamp duty on the site (land) if you’re purchasing it and it’s over a certain value.
If you buy a site with a ‘connected agreement’ to build residential property on it, the site is deemed residential property. You pay Stamp Duty on the site cost plus the cost of the building, exclusive of any Value-Added Tax (VAT).
Check Revenue.ie for more information.
Six self-build tips
From braving the weather, to unforeseen costs and deciding how to manage your project, here’s six helpful tips for before and during your build.
- Building Contractor or Direct Labour: You can choose to employ a contractor to oversee your project or do the labour yourself; known as ‘direct labour.’ Regardless of the route you take, relevant insurance cover will need to be provided.
- Additional costs: Don’t forget to include additional costs - fees associated with stamp duty, solicitors, valuations, local authority charges, architects, engineers, surveyors and planning permission.
- Time of year: Building during heavy rain or extreme cold can slow or even prevent your build from progressing.
- Planning: If you’re waiting for planning permission, check your Local Area Plan to see what your Local Authority has already approved/planned
- Statutory certification opt-out: You can decide to opt out of regular Building Control regulations - i.e. having a qualified architect or surveyor sign off on minimum building requirements.
- Final Payment: Only make your final payment once your home is properly finished and your final snag list has been addressed by the builder.
Self-build mortgage FAQs
Can I live in my current home while building and still get a self-build mortgage?
Yes, many lenders allow you to remain in your current home while your new property is being built.
However, you’ll need to show that you can afford your existing mortgage or rent payments alongside the staged drawdowns on your self-build mortgage.
Some borrowers choose to sell before construction begins, while others apply for short-term bridging finance if needed.
Your lender will assess your overall affordability before approving the loan.
What happens if my build costs increase after my mortgage is approved?
If construction costs rise during the build, lenders will not usually increase your approved mortgage amount. This means you’ll need to cover any additional costs from your own savings.
That’s why most lenders require a contingency fund, typically at least 10% of your total build cost, to help manage unexpected expenses.
Do I need a fixed-price contract to get a self-build mortgage?
Not necessarily. Some lenders will accept both fixed-price building contracts and direct labour builds, but the documentation requirements may differ.
If you’re managing the build yourself, lenders may require more detailed costings and staged certifications from your architect or engineer to monitor progress and control risk.
Can I switch my self-build mortgage once the house is finished?
Yes. Once your home is completed and fully drawn down, your mortgage becomes a standard residential mortgage.
At that point, you may be able to switch to another lender or move to a different rate, subject to meeting their criteria.
Before switching, it’s important to check for break fees if you’re on a fixed rate.
Compare mortgage rates & deals
Find a range of first time buyer and home mover mortgage deals in Ireland using our comparison.
