Is it possible to qualify for mortgage as a sole trader or company owner?

experiMental

Is it possible to qualify for mortgage as a sole trader or company owner?

Or are mortgages right now open mostly to those who are in full time employment with medium to large companies?

Gumbo

Definitely possible. Just need your finances in order and an accountant to certify income I think. It may be a bit stricter but don't let that out you off and apply to them all or go through a broker who does the leg work for you.

irishguy

experiMental wrote: »

Is it possible to qualify for mortgage as a sole trader or company owner?

Or are mortgages right now open mostly to those who are in full time employment with medium to large companies?

Depends what you do, Ulster Bank just gave me a re mortgage and I recently became self employed. Other banks wouldnt even look at me for a bit longer

ubermick

Curious on this as well, since I'm looking at moving back next year, and will be keeping my American job of 17 years, but as a contractor. Suppose it's like asking "how long is a piece of string" since every situation is different.

riclad

Yes ,you qualify for a loan depending on your income .
the bank will ask for 3 or more company accounts ,
from the last 3 years ,and the usual info re ,
current loans outstanding to you or your company ,
IF you own the company .
Then they use the usual formula re loan to income ratio
when assessing a loan and you,ll still need to have a deposit .
And self employed people can get loans as well .

Tigger

When I was looking for a mortgage I had to do the whole show the business's accounts to prove income etc
What I really didn't get was if someone had been working for me for a year on a quarter of my earnings they'd have qualified without having to see my accounts
made no sense to me

DublinDilbert

They make you jump through lots of hoops. One of the reasons I got an accountant. Even at that the banks are looking for "notice of assessments" which from what I can tell are no longer produced by revenue since 2012, as far as I can tell.

There's that bit in the application where they go "oh your self employed".

BryanF

experiMental wrote: »

Is it possible to qualify for mortgage as a sole trader or company owner?

Or are mortgages right now open mostly to those who are in full time employment with medium to large companies?

Yes & yes

Yes

(As a director of an ltd, working in the construction consultancy sector)

riclad

IT Might be easier to go to a mortgage broker and he , or she will tell you you,ll need
to get theses documents etc your income is x amount ,
you could probably borrow say 50x 3 or 4, eg 150k,
if you have 20 per cent saved up ,
20 per cent of the proposed loan amount under the new lending guidelines .

seamus

As others say, very possible. Most banks want to see three years audited accounts and a tax clearance certificate (to prove there are no big tax bills in the pipeline).

cormie

Is a broker generally a much better option at trying to apply than direct with the banks? Do the brokers just get a fee of any completed deals and could there be huge differences to the total price you pay over the course of 30 years depending on whether you go with a broker or direct to the bank and of course, what broker you go to?

riclad

The banks pay the brokers for bringing them business,
go for a standard variable rate mortgage if possible.
The fees,loan interest rates for mortgage for a broker loan should be exactly the same
as one getting the loan directly from the bank.
You can go to aib.ie etc eg various bank websites ireland . and see the current loan rates ,
there,s fixed rate, variable rates and mortgage s for investors .
The broker is there to help you get a mortgage,
say you borrow 200k,
you,ll end up paying 400k over 25 years approx,
say the broker might take 1 per cent commision .
It comes from the profit on the loan.
say the bank charges you 3.5 per cent ,
They borrow the money at 2 per cent approx.
search mortgage brokers dublin ie ,
or wherever you live ,meath ,sligo etc
They only get a fee if you get a loan through the broker ,
eg broker offers you for instance , aib loan at 3.5 variable over 25 year, 20 per cent deposit .
You accept it loan goe,s through and you use loan offer to buy a home,
and the bid is accepted and loan is drawn down from the bank as part of the house sale transaction .

Or just go direct to the bank.

the broker saves you time,
he,ll know which bank is more likely to loan you say 200k, based on your income,accounts etc
investment loans maybe slightly more expensive, in regard to higher interest payments ,
vs the standard loan for joe bloggs to buy a house to live in.
eg may 4 vs 3.5 per cent variable rate .

https://www.permanenttsb.ie/whatweoffer/mortgages/interest-rates/

the broker will advise you ,
should i go for a fixed rate loan say 3.9 per cent ,

vs variable rate loan, 3.5 per cernt
where the rate could rise at any time ,in 6months ,a year to say 4.3 per cent.

cormie

Thanks a lot for that, so why would anyone go direct to a bank then? Does it have any advantages?

riclad

if i have 50k,savings account in aib, i,m on say 45k salary,
I,ve been a aib customer for 10 years then i,ll just go to aib,
can i borrow 160k to buy a house ?
The worse they can do is say no,
eg if i think i can easily get a loan i,ll go to my own bank first ,
of course check rates on all banks for mortgages to make sure you are getting a good
rate .
See askaboutmoney irish websites loans mortgages advice ,info .
Banks might tend to give a loan to someone who has money in their bank,
and they look at your savings rate ,
do you save 100 euro plus per week, into your aib account ?
are you a regular saver .
do you have large credit card debts ?

a broker will give you a form to fill in ,and ask you questions ,
to help you get a loan,
and get a loan you can afford .
banks are mainly concerned with making a profit .

http://www.askaboutmoney.com


http://www.askaboutmoney.com/forums/mortgages-and-buying-and-selling-homes.2/

A broker will save you time ,
eg you may not have to go to 4 banks ,
he,ll probably know which bank is more likely to give you a loan.

cormie

Cool, thanks a lot, just wanted to make sure I wasn't going to be paying a higher price over the course of the mortgage for the sake of saving a bit of time by going to a broker instead of just going direct myself

riclad

There,s investment loans, variable rate loans,
fixed rate mortgages ,
look on the websites, the tsb, does not charge the same rate as say aib
on all loans,
look on the websites ,.tsb, aib,boi etc mortgage interest rates .
Before you go .
save x amount per week in aib, or boi,.
save at least 100 euro if you can every week.

http://personal.aib.ie/our-products/mortgages

athtrasna

riclad wrote: »

There,s investment loans, variable rate loans,
fixed rate mortgages ,
look on the websites, the tsb, does not charge the same rate as say aib
on all loans,
look on the websites ,.tsb, aib,boi etc mortgage interest rates .
Before you go .
save x amount per week in aib, or boi,.
save at least 100 euro if you can every week.

http://personal.aib.ie/our-products/mortgages

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