Product Features
Bank of Ireland provides a Self-Build Mortgage to help finance build projects for a new home. Unlike a standard mortgage, a self-build mortgage is typically drawn down in stage payments, spread out for up to 18 months as building work progresses.
A Self-build mortgage can cover most of the costs associated with a build or renovation but the customer will need to have funds available to put into the project up front. The mortgage amount usually covers the build cost including driveway, boundaries and connection of water and electricity.
What do we look for?
- It’s important to demonstrate how the deposit has been accumulated and also that funds are available to cover other costs such as insurance, professional fees, furnishings, etc.
- An extra 10% of the total cost is generally required to cover unforeseen expenses (the customer’s own funds are put into the project first). The cost of any special conditions attached to the planning permission should also be included in the calculations.
Each stage of work is inspected and certified by an appropriately qualified professional such as a registered architect, chartered engineer, or chartered building surveyor.
In general, a mortgage of up to 3.5 times’ gross annual income (combined income for joint applicants) is available to customers building their own home. Standard Loan to Value limits and mortgage terms for First Time Buyers and Movers apply. These limits can very.
For useful information and articles on building your own home, have a look at ‘Homemade’ – our self-build guide.
Document requirements
Here’s an outline of the key document requirements:
At the start
- Cost detail – either a fixed contract quotation or detailed costings for each element of the build.
- Planning permission – full permission needs to be in place at the mortgage application stage.
- Initial Valuation – an Initial Valuation report completed by a member of the Bank’s valuers panel.
- Architect’s / Engineer’s / Building Surveyor’s initial report, completed by an assigned qualified professional.
During the build
- Report Certificates – a Property Report Certificate from an assigned qualified professional is needed to confirm the work that has been completed before a stage payment can be released.
And at the end
- Final Valuation report when the build is complete, completed by the same valuer who completed the Initial Valuation Report.
- Certificate of Compliance – completed by the assigned qualified professional and the builder. Depending on the build, this may be some months after the work has been completed to allow time for defects to appear and be corrected.
Note: The Building Control Regulations allow owners to ‘opt-out’ of some of the Statutory Certification requirements for certain builds but the Bank still requires Report Certificates and a final Certificate of Compliance from the assigned qualified professional even if this option is chosen.
Borrowers may be purchasing a site or already own/been gifted the site.
- The maximum LTV (e.g. up to 90% for First Time Buyers) is calculated based on the Site Purchase (if applicable) plus build cost OR the final valuation figure (whichever is lower)
- Where the site is gifted / inherited, an application to borrow up to 100% of the cost of construction can be considered.
Rates
Customers can choose from our range of fixed and variable rate options.
Proposition
We offer a wide range of fixed rate options from 12 months to 10 years. Customers can combine certainty of repayments with a measure of flexibility by choosing a ‘Twin rate’ loan, i.e. a portion fixed and the rest on variable.
3% Cashback Offer (Cashback PLUS)
Cashback PLUS is exclusively for customers who are buying a home (First Time Buyer or Mover) or who switch their mortgage to The Mortgage Store – Powered by Bank of Ireland.
Up to 3% Cashback is available to First Time Buyers, Movers and Switchers who draw down a new mortgage by 31 December 2024. 2% Cashback draw down of a new mortgage. 1% bonus in 5 years subject to meeting the conditions of the mortgage. Additional 1% bonus not available for Buy to Let Investment or Equity Release mortgages. Cashback is not available on High Value Mortgage fixed interest rates. As of 18 April, cashback will not be available for new mortgage loans that draw down on a standard variable rate.
2% Cashback offer
Applicants who don’t have a Bank of Ireland current account can still avail of our 2% Cashback offer.
- 2% Cashback is available on mortgages drawn down by 31st December 2024.
- 2% of the mortgage loan back as cash after drawdown.
- Available with our full range of fixed mortgage rates.
- Cashback is not available with the High Value Mortgage fixed interest rate or our standard variable rate.
For self-builds / phased payments, the first drawdown must be within the offer period to qualify for our Cashback offers and the final drawdown must be made within 18 months of first drawdown.
Cashback payments are made into the mortgage-paying current account within 45 days of drawdown (within 45 days of final drawdown for phased payments). Cashback PLUS payments will be made within 45 days of the 5th anniversary of (final) drawdown. Terms and conditions apply.
Mortgage Flexi-Options
Customers can flex their mortgage to suit their lifestyle with our Flexi-options.
3-month payment break
A 3-month payment break up to three times over the life of the mortgage – really useful for extra expenses in a year such as the birth of a child or education fees. To be eligible:
- The mortgage loan must be drawn down at least 2 years (if drawn in instalments, it must be at least 2 years since the final drawdown),
- There must be at least 12 months between payment breaks,
- Customer must have complied with all the terms and conditions of the mortgage.
Applications are subject to approval. Available on a Principle Private Dwelling only. Only available on annuity (standard capital and interest) repayment mortgages. Lending criteria and terms and conditions apply.
At the end of the Payment Break period repayments will be adjusted so that the mortgage will be repaid within its original term. I.e. the ‘Break’ repayments will be spread over the remaining mortgage, which means the new repayments will be higher than they were before the Payment Break.
Skip up to 2 payments a year
For a little extra to spend at certain times of the year – such as Christmas or holiday time – customers can spread their mortgage repayments in a year over 10 or 11 months and skip the other one or two.
For example, to skip the repayment in December to have some extra cash at Christmas time, we can arrange for the repayments to be higher for the rest of the year in order to spread the full 12 months’ repayments over 11 months.
Subject to meeting the conditions of the mortgage. Lending criteria and terms and conditions apply. Once the customer selects a skip month repayment option it will continue each year unless they ask us to change it.
Overpay a mortgage and save interest
Your customer can make Overpayments, either regularly or as lump sums, when they find themselves with extra cash. This will reduce their capital balance and they pay less interest. It may even reduce their term.
- They can make regular or lump sum overpayments of any amount to a variable rate mortgage.
- If on a fixed rate they can overpay up to 10% of their normal monthly repayment (or €65, whichever is greater), without incurring a fee.
Customers can cancel regular overpayments at any time. Overpayments made are not refundable.
Split the mortgage rate
- With our Twin rate mortgage your customer can benefit from the certainty and stability of a fixed rate AND the flexibility of variable;
- Put a portion of the mortgage on a variable rate and the remainder on a fixed rate. Your customer decides the split.
Lending criteria and terms and conditions apply.
Bring a fixed rate when moving home
- Your customer can bring their Bank of Ireland fixed rate with them to their new mortgage without penalty as long as their new mortgage is drawn down within 6 months of redeeming their old mortgage.
Change a payment date
- Your customer can change their repayment date to another one in the month that suits them better such as right after payday.
Applies to monthly repayments only. Subject to meeting the conditions of the mortgage. Customers can move their repayment date by up to 21 days. Their repayments will be recalculated so that their mortgage will be repaid by the originally agreed date.