Renting with cash - will it affect mortgage?

ciaran75

Hi,
I'm looking to rent a house, the landlord want's cash only and has pretty much said it's off the books.
If I withdrew the identical amount €1300 same day each month from my bank a/c and got rent book / receipt of payments when I go for a mortgage would this be proof of payments or not?
Should I run a mile, thing is nothing else available.
Cheers,

runawaybishop

So he isn't declaring the income? Don't facilitate him. You are entitled to a receipt/rent book for rent paid and if its "off the books" he wont supply one.

pawrick

I was in this situation last year. The bank in my case accepted it once I provided bank statements showing all the withdrawals. i'd check with a mortgage adviser though to be certain, different bank might have different rules

on_my_oe

We had issues with this, and Permanent TSB listed this as one of the two reasons we were declined.

athtrasna

on_my_oe wrote: »

We had issues with this, and Permanent TSB listed this as one of the two reasons we were declined.

Friend was also declined because of this. They had to move into another apartment and delay their application until they had a record of regular electronic rent payments

The_Conductor

Colleague in work refused because of this- lender = Bank of Ireland

OREGATO

Myself and the OH rented for a year paying cash only direct to the landlord before we bought our own place.

While we were in the process of getting mortgage approval, we told the lender that our rent was in cash and showed them the amount each month that was taken out to cover same.

One thing we did when supplying the bank with our statements was highlight large transactions and regular transactions like the rent and put notes as to what they were for, i.e. there were some large transactions due to selling cars and buying (downgrading) to a different one.

For the rent, some months, the amounts would be higher/lower on one of our accounts given different circumstances, already having cash in hand etc.

They told us they didn't mind this and took our word for it with no problems or questions asked. This was with BOI.

As pawrick said, best to check with your lender but another thing to remember is everyone's financial situation is different (deposit amounts, size of mortgage requested etc) so it may well be one factor that could affect your application.

allibastor

Firstly,

for a rent amount that much don't rent in cash. You have very little comeback on anything.

Secondly, it depends on the bank, but from my experience in a similar situations years back, in boom times, the bank didn't entertain this (BOI) as they said that could be used anywhere.

Fair enough he wants Cash, but can he not even use a DD transfer as at least it shows you are paying to someone and not taking out of a cash point.

Lyn256

We were declined (Ptsb) for that reason also

TBH if you're serious about a mortgage- I wouldn't do it

gaius c

runawaybishop wrote: »

So he isn't declaring the income? Don't facilitate him. You are entitled to a receipt/rent book for rent paid and if its "off the books" he wont supply one.

Easy to say but rental market is very very tight and there's cowboys around every corner.