The saying “buying is cheaper than building” doesn’t always hold true anymore.
Across Ireland, more people are getting onto the property ladder by purchasing homes that need work — sometimes a lot of it.
From vacant cottages to derelict townhouses, thousands of Irish properties are waiting to be restored. And while Government supports like refurbishment grants and energy-upgrade incentives have made renovation more achievable, turning a fixer-upper into a forever home can be far more complex than it first appears.
The attraction is easy to understand:
Lower purchase prices
Freedom to design your own home
The satisfaction of bringing an old property back to life
But what looks like a bargain on Daft.ie can quickly escalate. Renovation budgets often miss hidden costs like structural repairs, rewiring, insulation, roofing, and compliance with modern building standards.
A clear plan — and realistic budgeting — are key before committing to a purchase.
Most Irish lenders now offer renovation or refurbishment mortgages, often structured like a self-build loan. Funds are released in stages as the work progresses, and each drawdown requires an engineer or architect’s sign-off.
To qualify, borrowers typically need:
Valid planning permission (for any structural works)
Detailed costings from a qualified professional
A 10% contingency fund to cover unforeseen expenses
Lenders also assess the property’s Estimated Future Value (EFV) — its expected worth once renovations are complete. Your mortgage amount depends partly on this figure, so accurate costings and valuations are vital.
Beyond construction, renovators face the same additional expenses as first-time buyers:
Legal fees
Stamp duty
Valuation and survey costs
Insurance
Insurance is particularly important. Lenders require full building cover, even during renovation. Depending on the stage of work, you may need temporary site insurance or a specialist self-build policy until the home is ready for occupancy.
Because renovation mortgages release funds in stages, borrowers must also have enough cashflow upfront to pay builders or secure materials before the first drawdown.
Government support for renovation has grown significantly:
Vacant Property Refurbishment Grant – Up to €50,000 for bringing a vacant property back into use, with an extra €20,000 top-up if it’s classed as derelict.
SEAI Home Energy Grants – Up to €25,000–€30,000 for insulation, heat pumps, solar panels, and other energy-efficiency upgrades.
These can be combined, but timing is critical. Most grants are paid after works are complete, meaning you’ll need bridging finance or savings to cover upfront costs.
A growing number of lenders now reward energy-efficient renovations with green mortgage rates — discounted interest for homes achieving a BER rating of B3 or higher.
If your project improves the property’s BER to that level, you can switch to a lower green rate once the works are certified. Many banks apply the discount automatically after a new BER certificate is submitted.
To maximise the benefit, discuss your energy-upgrade plans with your broker and lender early. This ensures your mortgage structure supports a green-rate switch at completion.
Even the best-planned projects come with surprises:
Hidden damp
Structural issues
Old wiring
Cost overruns
That’s why a 10% contingency fund isn’t just recommended — it’s essential.
Working with an experienced engineer, quantity surveyor, or project manager can keep things on track and give lenders confidence that the build will meet both schedule and compliance standards.
Renovating a property can be one of the most satisfying paths to homeownership. It adds value, revitalises neighbourhoods, and creates new housing from the existing stock.
But success depends on planning, professional advice, and choosing a mortgage that matches your goals — whether that’s accessing refurbishment funds, claiming grants, or qualifying for a future green-rate discount.
At Mortgage Navigators, we help buyers map out the financial and practical steps to turn renovation plans into reality — from approval through to the final key handover.