Self-build

Self-build Guide

• Step 1: Estimate costs and set a budget

  Calculate your budget based on the cost of the site, construction and fit out, fees, financial must-haves, and unforeseen expenses.

  • Site – cost will depend on location and size.
  • Construction and fit out – cost will depend on site conditions, house size and design, construction materials, and labour costs.
  • Fees – these include planning permission, architect, engineer, solicitor, valuation, stamp duty, local authority contributions, and water/electricity connections.
  • Financial must-haves – you must have a mortgage protection policy and building insurance policy.
  • Unforeseen expenses – be prepared for the unexpected when building your own home (like special planning conditions). It’s a good idea to have an extra 10% of the total cost as a contingency.

• Step 2: Talk to our mortgage specialists
  
  They can help you understand your mortgage options. Visit your local branch, call us on 0818 365 345 (9am to 5pm, Monday to Friday), or request a callback.

• Step 3: Save for your mortgage deposit
  
  Self-builders typically need to save around 10% of the cost of the build as a deposit. You will use these savings to fund the first stage of the build before your staged drawdowns are released.

• Step 4: Start your application
  
  When you’ve saved your deposit, it’s time to fill in your mortgage application online, in a branch, or over the phone.

• Step 5: Provide requested documents

  Alongside your mortgage application, you’ll need documents like:

  1. Proof of identification – your current passport or driver’s licence and a recent utility bill.
  2. Proof of income – payslips if you’re a PAYE employee or your most recent 2 years’ audited accounts if you’re self-employed.
  3. Records of your finances – your last 6 months’ current account statements and 6 months’ savings account statements demonstrating regular saving (if your accounts are not with Bank of Ireland).
  4. Cost detail – either a fixed contract quotation or detailed costings for each element of the build.
  5. Planning permission – full permission needs to be in place at the mortgage application stage.
  6. Initial valuation report – completed by a member of our valuers panel
  7. Architect’s/Engineer’s/Building Surveyor’s initial report – completed by your assigned qualified professional (we’ll give you this form).
  8. Provisional BER certificate – before your home is built you must indicate what it’s energy performance will be when complete. A registered BER assessor in your area can do this. The Sustainable Energy Authority of Ireland (SEAI) has a national register of BER assessors.

• Step 6: Get approval in principle (AIP)

  If your application is successful, we’ll send you a formal ‘Approval in principle’ letter.

  Remember: AIP is not a loan offer. AIP generally lasts for 6 months. If it expires, you’ll need to apply for AIP again.

• Step 7: Complete your application
  
  Once all plans and permissions are finalised, submit a full mortgage application with the property and construction details. We will assess your application, including a review of the project costs and valuation checks. If everything is in order, we’ll send you a formal ‘Mortgage Loan Offer’.

• Step 8: Appoint a solicitor
  
  If you do not already have a solicitor, now is the time to appoint one to help ensure everything is done legally and correctly during the mortgage process. Your solicitor will review contracts, manage the exchange of contracts to make the purchase legally binding, work with us to draw down funds, calculate and pay stamp duty, and register you as the new owner.

• Step 9: Take out building insurance and mortgage protection

  Before you can draw down the funds to start building your new home, you must take out a building insurance policy and a mortgage protection policy.

  Remember: You can choose a building insurance policy and mortgage protection policy from any provider.

• Step 10: Start building
  
  Time to agree a start date with your builder.

• Step 11: Draw down your funds in stages

  Your funds will be released in four stages as construction progresses:

  1. 1. Floor level – your first payment will be released when your foundations are complete and certified by your assigned qualified professional. The first drawdown must be within 6 months of the offer letter.
  2. 2. Roof level – your second payment will be released when the shell or frame has been built and certified by your assigned qualified professional.
  3. 3. Finished – your third payment will be released when the property is habitable – plasterwork finished, water and electricity connected.
  4. 4. Post completion – your final payment will be released when:

  – a final valuation report is completed by the same valuer who completed the initial valuation report,
  – a Declaration of Identity from an Assigned Certifier to confirm all services within the site boundaries ,
  – a satisfactory Certificate of Compliance from the Assigned Certifier,
  – confirmation that financial contributions in line with planning have been paid,
  – and a final BER certificate is completed by a registered BER assessor.

  Your minimum final drawdown will be 10% of your total mortgage amount or €15,000, whichever is higher.

  The final draw down must be within 18 months of the first draw down (or a maximum of 24 months from date of offer letter).

• What is a self-build mortgage?

  A self-build mortgage is a type of mortgage loan designed to finance the build of a new home or the renovation of an existing property.

  These types of mortgages are for customers who are building their own home or renovating. Self-build mortgage loans generally see the mortgage released in stages as the build/renovation progresses.

• Can I get a mortgage to include the cost of the site?

  Yes, a self-build mortgage can include purchase of the site.

  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.