Renovation Mortgages in Ireland 2026: Financing a Fixer-Upper

Buying a property that needs work offers real value in Ireland’s competitive housing market — older stock is typically cheaper than move-in-ready homes, and renovating to your specification means you get exactly what you want. The financing, however, is more complex than a standard purchase mortgage. Here is how renovation finance works in Ireland.

The Challenge with Renovation Finance

Standard Irish mortgages are assessed on the market value of the property at the time of purchase. If you buy a run-down house for €200,000 that will be worth €320,000 after €70,000 of renovation, a standard lender will only lend based on the €200,000 purchase price — leaving you to fund the renovation separately.

A renovation mortgage or home improvement product addresses this by lending against the anticipated completed value of the property after renovation.

Types of Renovation Mortgage in Ireland

1. Purchase + Renovation Mortgage (Stage Payment)

Some Irish lenders will advance an additional amount above the purchase price to fund renovation. The renovation funds are typically held by the lender and released in stages as work progresses — similar to a self-build stage payment mortgage.

How it works:

1. Lender values the property in its current state and also commissions an estimated completed value
2. A loan is approved based on the anticipated completed value (subject to LTV limits)
3. Funds for purchase are released at completion
4. Renovation funds are released in tranches as work is certified by an engineer or surveyor
5. Interim inspections confirm work is completed before each drawdown

Lenders to approach: AIB has offered renovation-linked mortgage products. Haven Mortgages (the AIB broker brand) and some other lenders assess these on a case-by-case basis. Finance Ireland and ICS Mortgages also have appetite for complex renovation cases via brokers.

Not every lender will take these applications — a mortgage broker with experience in renovation cases is valuable here, as they know which lenders are actively lending on renovation at any given time.

2. Top-Up Mortgage for Existing Homeowners

If you already own a property and want to renovate, the simplest route is a mortgage top-up — borrowing additional funds against your existing property, secured on the same asset.

Eligibility for a top-up:

• You have sufficient equity (typically the combined mortgage including the top-up must not exceed 80–90% LTV)
• Your income supports the increased repayment
• Your credit record is clean

Top-up rates are typically the same as your standard mortgage rate. Some lenders limit how frequently you can top up or cap the maximum top-up amount.

3. Separate Home Improvement Loan

For smaller renovations (typically under €50,000), many borrowers take a personal loan or home improvement loan rather than a mortgage product. These are unsecured (not secured on the property) and:

• Process faster
• Have no requirement for staged drawdowns or inspections
• Are available from banks, credit unions, and online lenders

Interest rates on personal loans are higher than mortgage rates (typically 6–12% vs 3–4% for mortgages). For large renovation budgets, the cost difference is significant — a mortgage product is cheaper over time.

4. Credit Union Loans for Home Improvement

Credit unions in Ireland offer home improvement loans at competitive rates, particularly for members with strong savings history. Some credit unions will lend up to €50,000–€75,000 for home improvement without requiring a property charge. Check with your local credit union for current rates and limits.

SEAI Energy Upgrade Grants

The Sustainable Energy Authority of Ireland (SEAI) offers substantial grants for energy efficiency upgrades on homes built before 2011. These grants reduce the amount you need to borrow and significantly improve the energy rating (BER) of your home.

A full deep retrofit (heat pump + insulation + windows) can attract €20,000–€40,000 in SEAI grants, dramatically reducing what you need to finance.

Important: Grants are claimed after the work is done, not upfront. You must fund the work, then claim. If you need to borrow for the renovation, the loan must cover the full amount initially.

The SEAI One-Stop-Shop Scheme

SEAI’s One-Stop-Shop service handles the full energy upgrade process for homeowners — surveying, planning, project management, contractor appointment, and grant claim — in return for a management fee. This is particularly useful if you are not comfortable managing contractors directly or if you are buying a property that needs significant energy work.

Some lenders have created partnerships with the SEAI One-Stop-Shop model to offer streamlined renovation finance tied to energy upgrade projects.

Key Considerations Before Buying a Renovation Property

Structural Survey is Essential

Before buying any fixer-upper, commission a full structural survey from a qualified engineer or surveyor. A basic valuation (which your mortgage lender orders) does not identify structural issues. A structural survey costs €400–€800 and can reveal:

• Roof structure defects
• Foundation movement or subsidence
• Damp penetration
• Pyrite in floor infill (significant issue in parts of Ireland)
• Asbestos (in properties built before 1980)
• Electrical system age and condition
• Structural wall interference from previous alterations

Any of these issues could add tens of thousands to your renovation budget. Survey first, bid second.

Renovation Cost Estimates in Ireland (2026)

Construction costs have risen substantially. Budget conservatively:

Add 15–20% contingency on top of your contractor quotes. Renovation projects almost always encounter unexpected costs once walls are opened.

Planning Permission

Extensions, material changes of use, and certain structural works require planning permission. Decorative renovation and internal works generally do not. Your architect or contractor can advise on what requires permission.

If the property you are buying has had work done without required planning permission, this is a title issue — your solicitor will identify it. Retrospective planning permission (retention) may be obtainable, or the seller may need to regularise before you buy.

Vacant Property Refurbishment Grant

The government’s Vacant Property Refurbishment Grant (part of the Croí Cónaithe scheme) provides grants of up to €50,000 (€70,000 for derelict properties) for buyers who purchase and renovate a vacant property as their principal private residence. Properties must have been vacant for at least 2 years.

This grant stacks with SEAI grants for the energy upgrade portion of the work. Together, the total grant support available on a derelict property can be substantial — potentially €80,000–€100,000+ between the two schemes.

The grant is paid on completion of the renovation works and is means-tested in some locations. Check the up-to-date terms on the Department of Housing website.

Working with a Mortgage Broker on Renovation Finance

Renovation mortgages involve more complexity than standard purchases, and not all lenders will take them. A mortgage broker with renovation experience:

• Knows which lenders are actively lending on fixer-uppers
• Can structure the application to show the lender the completed value case
• Manages the stage payment and drawdown process
• Identifies whether a top-up, personal loan, or full renovation mortgage best suits your situation

Given the complexity, using a broker is strongly recommended for renovation finance beyond a simple top-up on an existing mortgage.

See also: Green Mortgages Ireland | Self-Build on Family Land | Planning Permission Ireland | How Much Can I Borrow? | Mortgage Brokers in Ireland