Self Build Mortgage
Applicants must meet both affordability and income multiple criteria to be considered for an Ulster Bank mortgage.
We require you to ensure, prior to draw down of Stage, 1 that:
(a) the Property has the benefit of all necessary planning and building control consents and;
(b) there is no evidence of any breach of the planning conditions or breach of any other consent or certificate affecting the Property and;
(c) you have reported to us anything which may affect the Bank’s security.
(d) the In Course of Construction Insurance Policy or Contractors All Risk Policy (as applicable) is sufficient to cover the cost and extent of the works being undertaken
In addition if the build is builder led we require –
- Fixed Price Contract – on headed paper
- Builders Personal Indemnity Insurance
- HB47 certificate
If the build is Architect or Chartered Building Surveyor led we require –
- Architects/ Surveyors costings to complete the build – on headed paper
- Estimates from all tradesmen
- Architects Professional Indemnity Insurance
Please note: Architects costings and Builders fixed price contract must contain kitchen and sanitary ware so that property is finished to a habitable level.
Stage payments are made subject to receipt of satisfactory Architects Certificates on the Banks standard Stage Payment Certificate at various stages of construction which are generally as follows:
Completion of site clearance, foundation and main walling
Completion of roof construction, external window and door joinery
Completion of first fix
Completion of second fix
The monthly mortgage repayment installments will commence once the first stage has been drawn down and will be based, at any one time, on the balance outstanding spread over the original term.
The first stage payment will normally be released when the property has reached main walling stage unless otherwise agreed. The Bank will restrict stage payments to a total of 6 during the course of construction including the final retention.
A minimum retention of €10,000 will be withheld pending a final satisfactory valuation and Certificate of Compliance with planning and building regulations has been received
Below is a template for costings which should be submitted with the application.
Construction of the property must be either:
- Registered within the HB47 Scheme, or
- Supervised by a suitably qualified architect or chartered building surveyor who must:
- supervise construction from the outset to completion
- be in possession of suitable current professional indemnity insurance
Conditions to be satisfied
If an application for stage payments has been agreed Mortgage Centre must sight the following documentation prior to drawdown of the first stage:-
Planning permission and building control approval
Grant of Full Planning Permission and confirmation there are no onerous clauses e.g. agricultural clauses
Fixed price contract
Constructions should be undertaken by way of a fixed price contract with a copy being enclosed with the initial application. Alternatively, if the work is to be completed by direct labour, full costings should be provided with the application together with written confirmation from the Architect confirming that the building costs estimated are sufficient to complete the property to a satisfactory standard in accordance with plans.
Inspections must be carried out by a Valuer on the Bank's panel as follows:
- Initial inspection
- Before building work commences confirming projected value upon completion. (The Valuer must be provided with site plans to enable this initial inspection to be undertaken).
- Re-inspection on completion of each stage.
If construction work has already commenced, the Valuer will advise the stage at which the project may join the appropriate schedule.
The property must be insured during the course of construction and when completed, in line with the Valuer's recommendation.
Normal requirements for insurance during the course of construction provide cover for fire, subsidence, smoke, storm, flood and impact.
The acting solicitor should be instructed to ensure that the insurance of these risks has been arranged, either by the applicant or the builder, and, where possible, to have the Bank's interest noted.
Release of stage payments
Payments will be released on receipt of each satisfactory inspection report. Alternatively, where the work is being supervised by an architect, draws will be permitted against Architect's Certificates.