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Loan to income exception

  • 14-03-2018 6:10pm
    #1
    nails1
    Registered Users, Registered Users 2 Posts: 495 ✭✭


    I’m single self employed 31 y/o male earning circa 40k a year with 50k deposit. I’m interested in a property that is 290k but I think I can only get a mortgage for 140k plus my deposit which comes to 190k. I’ve been reading about loan to income exception, how does this normally work?


Comments

  • #2
    bleary
    Registered Users, Registered Users 2 Posts: 495 ✭✭bleary


    nails1 wrote: »
    I’m single self employed 31 y/o male earning circa 40k a year with 50k deposit. I’m interested in a property that is 290k but I think I can only get a mortgage for 140k plus my deposit which comes to 190k. I’ve been reading about loan to income exception, how does this normally work?

    I don't think it is realistic for you at all. Exceptions are usually to 4 times income . You're looking for 6. Also exceptions wouldn't be given to self employed. Typically reserved for more stable work such as civil servants doctors with guaranteed jobs and income increases.


  • #3
    nails1
    Registered Users, Registered Users 2 Posts: 495 ✭✭nails1


    bleary wrote: »
    I don't think it is realistic for you at all. Exceptions are usually to 4 times income . You're looking for 6. Also exceptions wouldn't be given to self employed. Typically reserved for more stable work such as civil servants doctors with guaranteed jobs and income increases.

    It’s a three bedroom house and I plan on renting two of the rooms out. I will also be getting 100k in 3 years when my folks take retirement and sell up. Would these factors help at all?


  • #4
    Eric Cartman
    Registered Users, Registered Users 2 Posts: 26,280 ✭✭✭✭Eric Cartman


    nails1 wrote: »
    It’s a three bedroom house and I plan on renting two of the rooms out. I will also be getting 100k in 3 years when my folks take retirement and sell up. Would these factors help at all?

    probably not mate, they don't take lodgers as a long term income source as much as you'd like to, it'll help a bit but not much.

    for self employed people it seems that you may aswell use 3x even instead of 3.5x income as nobody seems to want to even honour the full rate.


  • #5
    bleary
    Registered Users, Registered Users 2 Posts: 495 ✭✭bleary


    No all those things are hypothetical as far as the bank is concerned. unfortunately for you . With the 100k you would just be in budget. Continue to save, increase your income or look for something in budget.


  • #6
    bleary
    Registered Users, Registered Users 2 Posts: 495 ✭✭bleary


    Forgot the last option . Find a partner to share the mortgage with.
    She moves in and now you don't want to rent a room out
    Your parents hate her ,so decide to spend the 100k on a tesla or two and now you cant afford the mortgage anymore


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  • #7
    nails1
    Registered Users, Registered Users 2 Posts: 495 ✭✭nails1


    bleary wrote: »
    Forgot the last option . Find a partner to share the mortgage with.
    She moves in and now you don't want to rent a room out
    Your parents hate her ,so decide to spend the 100k on a tesla or two and now you cant afford the mortgage anymore

    Looks like I’ll be signing back onto Pof then :)


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