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.
Who offers self build mortgages in Ireland?
These are the main lenders that offer self build mortgages:
Their lending criteria varies and your personal circumstances will be taken into account. Some lenders offer interest only mortgages for the first 12 months, to help keep costs down in the first year.
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
Based on your needs, there is usually flexibility over the number of ‘stage payments’ you can receive - which is when a payment is made to cover part of the build. 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
Each stage of the build must be certified by an official certifier before a payment is released. Payments are requested each time via your solicitor.
Self build insurance
You’ll also need to get self build insurance to protect your site and property from damage caused by things like fire, storm, flood, as well as break in 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:
If you’re still unsure what insurance you need, speak to a financial adviser.
Self build mortgage FAQs
Can I claim the Government's Help to Buy (HTB) incentive?
Yes, 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 2024
- 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 €30,000 or 10% of the property’s completion value - whichever is lower. The Help to Buy incentive will be fully reviewed in 2024.
Do I have to pay stamp duty on a self build property?
Yes. If you’ve bought a site with a linked agreement to build a property on, you must pay stamp duty on the total site cost and construction cost, excluding VAT.