Mortgage Advisor & Director
Mortgage Advisor & Director
If you’re based in Northern Ireland and hoping to build your own home, a key challenge is securing a self-build mortgage to finance the project. Here we cover the essential details on self-build mortgages in Northern Ireland; including deposit requirements, how to calculate your costs, and the best lenders available.
Are self-build mortgages available in Northern Ireland?
Yes, these mortgage products are designed specifically for those who want to build their own homes and are available throughout Northern Ireland. However, this type of mortgage differs from a regular home loan because the money is typically released in stages (tranches of funds) as your self-build project progresses.
Usually, each tranche of funds is provided in arrears or advance:
- Arrears: The most common method and means you can draw down the appropriate portion of finance after completing each key stage (e.g. substructure, roof tiling), so you’d need some upfront capital to get started.
- Advance: This allows you to draw funds at the beginning of each stage, which can help if you’ve got limited resources for your self-build project in Northern Ireland. But, few lenders offer advance terms because it is riskier.
Connect with a self-build mortgage specialist today
Eligibility criteria for self-builds in Northern Ireland
The criteria for a self-build mortgage differs from standard residential mortgages, and there can be location-specific requirements if you’re in Northern Ireland:
- Land or property location: Although self-build mortgages are available across Northern Ireland, certain lenders may have geographical restrictions around particular areas and types of land. Your plans must meet any specific location criteria from lenders, especially in remote or rural areas. For example, some lenders may exclude certain postcodes.
- Self-build factors: Lenders will want to see thorough and detailed plans of your project, including realistic cost estimates for each stage and details of any previous experience you have. Lenders will also want to see an initial valuer’s report, whether you’ve got insurance for each building stage, and which companies or individuals will be involved in the project (architects, builders, landscapers etc.).
- Local approval: You may need to provide proof of planning permissions from whichever of the 11 local government districts (LGDs) where your property will be located (for example, Antrim and Newtownabbey Borough Council, Armagh City, Banbridge and Craigavon Borough Council etc.).
- Type of property and use: The construction method and type of property can also narrow down which self-build mortgages you’d qualify for in Northern Ireland. How you plan to use the property and whether there are any outside buildings or outhouses can all play an important role in a lender’s decision.
- Deposit size: The deposit requirements for self-build mortgages in Northern Ireland (and elsewhere) can be higher due to the increased risk involved for lenders. Typically, you’ll need at least 15% to 20% of the estimated completion value. However, deposit requirements can depend on your property plans, building experience, and overall application strength. Keep in mind, some lenders may require a deposit more in the region of 30% to 40%.
- Credit history: Similar to other types of mortgages, prospective lenders will want to check your credit history. If you’re hoping to get a self-build mortgage in Northern Ireland and have bad credit, don’t fret, it’s still possible to secure financing if you deal with the right lenders.
It’s best to get support from a mortgage advisor who specialises in self-build in Northern Ireland because they can help you prepare your application, introduce you to the right lenders, and help you manage the process from start to finish.
Calculate the cost of your self-build mortgage
Calculating your repayments can be more complex with self-build mortgages due to the structure of the financing. However, we’ve got a helpful self-build mortgage calculator to give you a rough idea of your monthly repayments.
This calculator tool for self-build mortgages in Northern Ireland lets you add tranches (key stages where funds are released) and will work out the running cost based on single or multiple tranches. Just click ‘add tranche’ and you can select the specific amount borrowed and individual interest rate for each tranche.
Whether you’re making plans for your future project or part-way through a current build, this self-build calculator for Northern Irish mortgages will give you rough estimates to work with:
Total Amount Borrowed: £0.00
Monthly Repayments: £0.00
Do you need to use a local broker in Northern Ireland?
It’s usually not necessary to use a local broker. The main reason is that local advisers in Northern Ireland may not have experience arranging self-build mortgages, or they might be limited in the financing options they can provide due to existing relationships and commitments with lenders.
Our impartial and independent mortgage brokers have a proven track record of securing the best self-build mortgages across Northern Ireland. However, we also appreciate that sometimes it can be helpful to use a local broker who knows the area (especially in the countryside). So, it’s no problem for us to arrange this if it means securing you a better deal.
Best self-build mortgage rates and lenders in NI
Certain lenders and banks in Northern Ireland may be willing to discuss self-build mortgages. Examples include AIB (operating across Northern Ireland and the Republic of Ireland) and Progressive Building Society (operating only in Northern Ireland). Other notable lenders like Ulster Bank and the Bank of Ireland may be open to discussions but tend to have stringent requirements for this type of mortgage.
For self-build mortgages in Northern Ireland, it’s worth dealing with the right lender for your circumstances, which could be a niche or lesser-known provider that specialises in this type of finance. Because, it sometimes means they can offer better self-build mortgage rates or even bespoke financing arrangements.
Why choose Teito for your self-build mortgage
We understand that self-build mortgages in Northern Ireland come with extra complexities and obstacles. While you’re directing time and effort towards your building plans, we can help you secure the most competitive deal for your finance.
We offer a free, no-obligation chat where you can discuss your project with an impartial broker who can find you the best self-build mortgage.
Here are just some of the reasons people in Northern Ireland choose us for their self-build mortgages:
- Our brokers specialise in self-build mortgages in Northern Ireland
- We can introduce you to flexible lenders with excellent rates
- Your first chat is free with no obligation to proceed
- We have a 5-star rating on leading review sites
Ready to take advantage of a free, no-obligation chat with a broker who specialises in self-build mortgages? Get started here.
FAQs
Not specifically, but you’ll likely find that your pool of lenders to choose from is smaller because some lenders won’t have the knowledge or expertise to be able to offer self-build mortgages in Northern Ireland. So you won’t get penalised for your location, but it can be harder to find the best rates due to fewer lending options.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.