Renovation Mortgages: How to Finance a Fixer-Upper in Ireland

Can You Get a Mortgage for a Fixer-Upper?

Not everyone dreams of a brand-new home that looks identical to the neighbours’. With Ireland’s housing market facing supply shortages and rising construction costs, many buyers are turning to older properties in need of renovation.

For first-time buyers with trade skills, DIY experience, or reliable contacts, a renovation mortgage can be a more affordable way to step onto the property ladder. But will lenders be on board? And what do you need to secure financing for a property that needs more than a fresh coat of paint?

The good news: the mortgage application process isn’t drastically different from a standard mortgage. However, the way funds are released and the oversight required for the work differ. Here’s what to expect when securing a mortgage for a renovation project.

Mortgage Lending Terms for Renovation Properties

The same Central Bank of Ireland lending rules apply:

• First-time buyers can borrow up to 4 times their combined income.
• A 90% loan-to-value (LTV) ratio is available for eligible buyers.
• Split mortgages (part fixed, part variable) are an option.
• If a renovation plan is in place, mortgage approval typically takes 10-12 days.

Lenders are generally willing to approve mortgages where the planned renovations will increase the property’s future market value. A valuer appointed by the bank will assess the property’s Estimated Future Value based on your proposed works.

Planning & Documentation Requirements

Lenders will need detailed information about the renovation, including:

• Planning permission (if required).
• A breakdown of works and costs, prepared by an architect or engineer (especially for structural changes).
• An architect’s report confirming build/renovation costs.
• A certificate of compliance with building regulations and planning laws upon completion.
• A final valuation report verifying that the property is fully finished and meets the agreed market value.

How Are Renovation Mortgage Funds Released?

For major renovations, lenders don’t release the full mortgage amount upfront. Instead, funds are drawn down in stages, based on completion of key project phases.

• An engineer or architect must verify each completed stage before funds are released.
• You may need personal funds to cover initial work before the first mortgage drawdown.
• Lenders often require a 10% contingency fund to cover unexpected overruns (a common issue in renovations).

Some self-build mortgages offer interest-only repayments during construction, reducing financial pressure while the project is underway.

Green Mortgage Incentives for Energy-Efficient Homes

Renovating a home to improve its Building Energy Rating (BER) can qualify you for cheaper green mortgage rates.

• A BER of B3 or higher qualifies for lower interest rates.
• The Sustainable Energy Authority of Ireland (SEAI) offers grants of €25,000 – €30,000 to upgrade energy efficiency.
• Lower-BER properties are often cheaper to buy, making them a more affordable option.
• Submit a new BER certificate after renovations to switch to a discounted green mortgage rate.

Grants & Supports for Home Renovation

The Irish government is actively encouraging the revitalisation of vacant properties. Several grants and loans are available to help buyers turn neglected homes into modern, energy-efficient residences.

• Vacant Property Refurbishment Grant

  • Up to €50,000 for refurbishing vacant homes.
  • An additional €20,000 for derelict properties.

• SEAI Grants

  • Available alongside the Vacant Property Refurbishment Grant.
  • Covers insulation, heating upgrades, and other energy improvements.

Important: Most grants are only paid after the work is completed, meaning you may need to fund the renovation upfront. Working with an energy specialist can help ensure you maximise available grants.

Is a Renovation Mortgage Right for You?

For buyers who are prepared for the additional planning, staged payments, and upfront costs, a renovation mortgage can be a cost-effective way to create a bespoke home while benefiting from grants and green mortgage rates.

If you’re considering this option, speak to a mortgage advisor early to ensure your renovation plans align with lender requirements and available incentives.

Article by Margaret Barrett
Managing Director at Mortgage Navigators,