How raise is accounted for in mortgage

trep15

Hi there,

I will be applying for a mortgage soon and I'm wondering how they handle a raise as I'm due one in May. Let's say I approach them in may with a new salary, when assessing me for a mortgage using the last 6 months of bank statements, will they add my raise into the situation i.e. if pre-raise i'm earning 2k and month and saving/paying rent of 1k p/m but post raise I'm earning 3k a month. Will they approve me a mortgage of 2k p/m i.e. savings/rent pre-raise(1k) plus the amount of extra money i'm getting post raise (1k)? Apols if the figures are confusing, I tried to make it as simple as possible.

Thanks!

ELM327

They will base the income tests on your proven earnings, you would need to have received paychecks with the salary. At least that was my experience in 2022.

No. When applying for a mortgage the focus on current earnings, not future earnings.

May be better off waiting until the raise shows up in your payslips

trep15

Thanks @ELM327 , but lets say I go with one paycheque at the new salary, will they take that into account when looking at the 6 months historical data (in the way i described in my original comment)?

Jim2007

https://www.boards.ie/discussion/comment/121768243#Comment_121768243

There is no generic answer. It would entirely depend on the circumstances, if your employer was say a state body, where it is very likely thevraise and the business will continue, then possibly. If on the other hand you were an unskilled worker, working for some small one man company, almost certainly not.

Smee_Again

https://www.boards.ie/discussion/comment/121768243#Comment_121768243

BOI accepted my higher salary after a raise once I showed them 1 payslip with the new amount.

My raise was c. 30% as well so made a huge difference to the amount I could borrow.

Sono

Salary cert from employer showing increased wage would be grand, banks will accept that.

3DataModem

The 6m bank statements are there to assess your behaviour and outgoings.

The single current salary number is there to assess affordability.

The payslips are there to prove the salary.

trep15

OK, thank you everybody