Mortgage Question

mikefrommeath

Hi

So we are trying to move to a bigger house, my wife 2 kids under 6 and I.

My wife is on a very good salary, 75K euro. I am self employed on 40k. For under a year.

The bank will not look at me for a mortgage as i am self employed.

I will be able to put up 50K in cash, will this have any influence on the banks view on me?

I believe the bank will look at me as a dependent, is this true?

Do you think they will lend to my wife? We need to borrow 180K

IamCait

mikefrommeath wrote: »

Hi

So we are trying to move to a bigger house, my wife 2 kids under 6 and I.

My wife is on a very good salary, 75K euro. I am self employed on 40k. For under a year.

The bank will not look at me for a mortgage as i am self employed.

I will be able to put up 50K in cash, will this have any influence on the banks view on me?

I believe the bank will look at me as a dependent, is this true?

Do you think they will lend to my wife? We need to borrow 180K

Hi OP, I just went to the bank and my figures were extremely similar to yours only mine was the higher figure and I too was the sole trader, which they weren't concerned about at all. What bank did you apply with? I was basically approval in principle a €370K mortgage once I show that we can save €2,100 between us for 6 months minimum before we apply. The guy I was dealing with wasn't concerned at all that I was a sole trader and was very sure that once we show those savings we would get the loan. Having said that they want to see at least 3 years of those takings and thankfully the last 4 years were very similar so maybe that was in my favour.

mikefrommeath

Thanks very much for this reply. We didn't apply yet, I am just looking for as much information as possible before we do.
Yes I heard they are looking for 3-5 years trading history, which I dont have. So I think my wife may have to apply by herself.

Delighted its working out for you.

IamCait

mikefrommeath wrote: »

Thanks very much for this reply. We didn't apply yet, I am just looking for as much information as possible before we do.
Yes I heard they are looking for 3-5 years trading history, which I dont have. So I think my wife may have to apply by herself.

Delighted its working out for you.

Ye see I think that's what could be your issue right now, I'd imagine if you had another year under your belt they might be a little more lenient, having 3 would be perfect. No harm in shopping around, some banks are better than others.

Trish56

OP, you will have no problem getting a mortgage as a self employed sole trader once you can provide 2/3 years accounts. Some banks look for 3 years accounts while one I am aware of just look for 2 years. All the lenders will look for your Revenue Balancing statements as evidence of income for the previous 2/3 years. You will also need to submit 6 months business and personal current account and savings statements.

Based on the income you mentioned you should have no problem borrowing 180k once you have a good credit history and as a 2nd time buyer you have 20% deposit. Also if you cannot provide 2 years accounts you will qualify for a mortgage of 180k on your wife's income only - this will of course depend on your ages and if ye have no short term borrowings and have regular savings.
Hope this helps.