Irish Independent: Can we include cost of renovations in amount that we can borrow?

Irish Independent: Can we include cost of renovations in amount that we can borrow?

Posted on 17Apr

By Charlie Weston, Irish Independent

Q My husband and I have our eye on a nice ‘fixer-upper’ for €120,000. It’s a bit of a project and needs about €100,000 to bring it up to scratch. We wonder how much can we borrow as second time buyers? Is it 80pc of the sale price, or 80pc of the house plus the cost of renovation works?

A As second-time borrowers you can borrow up to 80pc of the value of the home, according to head of credit at MyMortgages.ie Joey Sheahan. If you propose to spend in the region of €100,000 on construction, for example, you can borrow 80pc of the cost of the works once the value of the property increases by the amount of the works. Therefore, if you are keen on the house from your viewings, get an engineer, architect or quantity surveyor to cost the works.

Read More: https://www.independent.ie/business/personal-finance/can-we-include-cost-of-renovations-in-amount-that-we-can-borrow-40322200.html


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