How much equity does your mortgage need?

Available funds matter more than headline wealth

Savings, investments that can be sold in time and a firmly agreed gift may form part of your own funds. Availability, evidence and timing are essential. An asset you have not yet sold cannot automatically be treated as readily accessible cash.

Lenders assess work you carry out yourself differently. It does not replace material costs or a cash reserve. Include only work you can realistically complete with the necessary skills and time.

Calculate your usable equity

For a €400,000 property, this simplified example leaves €360,000 of the purchase price to finance. Modernisation and any further costs must be added separately. These figures illustrate a calculation, not a lending decision.

Why additional equity may help

Your own funds reduce the borrowing required. Their effect on the interest rate depends on income, the property and the lender’s valuation, among other factors. The purchase price is not necessarily the value a bank accepts as security. An equity percentage alone therefore cannot determine a particular rate.

Evidence to prepare

• Current savings and investment statements showing when funds are accessible.
• For gifts: the amount, timing and suitable supporting evidence.
• Existing borrowing or charges that reduce the funds actually available.
• Separate figures for purchase costs, modernisation and your cash reserve.

Frequently asked questions