Mortgage for self build

Hi will be looking for a mortgage shortly for a self build and just wondering firstly which lenders are the best to approach for this type of product? We've been gifted a 1 acre site in the lovely location in Kildare so would only require the build cost but probably prefer to get 100%. The problem is that our existing home (3 bedroom house) in Rathfarnham, Dublin which we purchased in 2005 is in negative equity with €280k still on the mortgage. We did put down a 20% deposit at the time to purchase it so would like to rent it preferably and cover any gaps in the mortgage ourselves. We have no other debt, no car loans, no credit card debt, not consistently overdrawn, some savings €20k, no history of arrears and luckily in permanent jobs with good salaries. We'd be looking to borrow around €350k for the build mightn't use it all but want to cover ourselves for any budget overruns. Any advice would be good before i start approaching banks!!

JamesD,

350k over 30 years at 6% would have repayments of around 2k per month.

Can you show you can afford this repayment through a combination of current mortgage repayments and/or savings?

If not, then you will struggle to get approval.

How much negative equity are you in? Most lenders will not approve you due to the negative equity.

All the banks are lending provided you pass their criteria.

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Most lenders will now look for you to show you can afford both your exisitng mortgage and your new mortgage, i.e will not accept rent to cover the first property. As Norfbank said, repayment capacity seems to be a big thing as well. Best of luck with it.