Hi,
I'm looking for advice with respect to financing a self-build. I'm building on a family site and architect has advised that finished house cost to be in the region of €250,000-270,000. I hope to being building in January next and by that time, expect to have approximately €80K available in savings. I'm assuming given salary, savings etc. & equity in another property that I will sell in 12months (currently leased to tenant) that obtaining approval for $250K will not be a major issue. I'd appreciate any advice on what size of mortgage I should look for & how then to best finance the build, i.e. usurp bank finance before spending own savings or vice versa etc. Second question...(novice shining through) - if bank approves mortgage for €250K for example, am I then obliged to draw it all down or can I draw down only the deficit between my savings and cost of building. Any advice, much appreciated.
I'm looking for advice with respect to financing a self-build. I'm building on a family site and architect has advised that finished house cost to be in the region of €250,000-270,000. I hope to being building in January next and by that time, expect to have approximately €80K available in savings. I'm assuming given salary, savings etc. & equity in another property that I will sell in 12months (currently leased to tenant) that obtaining approval for $250K will not be a major issue. I'd appreciate any advice on what size of mortgage I should look for & how then to best finance the build, i.e. usurp bank finance before spending own savings or vice versa etc. Second question...(novice shining through) - if bank approves mortgage for €250K for example, am I then obliged to draw it all down or can I draw down only the deficit between my savings and cost of building. Any advice, much appreciated.