# Key Post: Mortage for site and house



## Elcato (16 Jun 2004)

My sister has been told that banks don't give mortgages on sites and houses that will be built on them - only a mortgage to the value of the house. is this true?


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## Sarah Wellband (18 Jun 2004)

*Re: mortage for site and house*

No, it's not true. Lenders will advance up to 90% of the site price as long as there is full planning permission in place and then 90% of the cost of construction. If there is only outline planning permission First Active will advance up to 80% of the site price. If there's no planning then you'd have to get a unsecured bank loan rather than a mortgage.

Kind regards,

Sarah

www.rea.ie


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## edel (18 Jun 2004)

*mortgage for house and site*

Thanks Sarah!


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## FuriousHarry (29 Jun 2004)

*mortage for site and house or Site Loan.*

Hi,

How much can you borrow ?
Could you get 90 % of site value ?

if So - are the APR's way higher ?

I'd prefer to buy a site outright (say 80000 Euro), subject to FPP.
And be in no rush to start building.

The when I decide to build 2 yrs or so, I've more saved, and can shop around for better mortgage.

Any advice ?

Is one better off  getting a loan for both site and house build  - Or is there any advantages of getting a loan to pay for the site only.

Cheers,
Harry.


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## paulocon (20 Mar 2007)

Given that this is a key post, these recent articles might be of use...


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