Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

Can BIK be counted in Mortgage Calculation?

Options
  • 26-11-2020 1:18am
    #1
    Statusquo73
    Registered Users Posts: 11 ✭


    Hi Guys

    Thank you in advance stopping by and reading my question.

    Can Benefit in Kind could be counted as an income for mortgage calculation?

    Unfortunately my salary is not enough to be qualified for Help to buy scheme. If my BIK will be added in mortgage calculation then I am eligible.

    Just not sure if it can be done and if yes, which banks accept this?

    Thank you in advance

    Mehdi
    Tagged:


Comments

  • Options
    #2
    Lexio7
    Registered Users Posts: 24 ✭Lexio7


    I would think no, as BIK is not actual income.

    I could be wrong, so happy to see what others say.

    What exactly is the benefit you want to class as income?


  • Options
    #3
    colm_mcm
    Registered Users Posts: 73,382 ✭✭✭✭colm_mcm


    Do you mean expenses?


  • Options
    #4
    Allinall
    Registered Users Posts: 6,533 ✭✭✭Allinall


    BIK is regarded as income by Revenue, so I would say you should have a strong argument.

    It is, in effect, your employer paying for a private expense that you would otherwise have to pay yourself.


  • Options
    #5
    Smee_Again
    Registered Users Posts: 1,988 ✭✭✭Smee_Again


    MY health insurance BIK wasn't included when I applied.


  • Options
    #6
    Lexio7
    Registered Users Posts: 24 ✭Lexio7


    Allinall wrote: »
    BIK is regarded as income by Revenue, so I would say you should have a strong argument.

    It is, in effect, your employer paying for a private expense that you would otherwise have to pay yourself.

    That does not make sense.

    A common type of BIK is private health insurance.

    Are you suggesting that every single person who receives BIK for health insurance would have paid for it if they had not received this BIK.

    BIK is a non cash benefit but taxed at the cash price.


  • Advertisement
  • Options
    #7
    Mitch Connor
    Registered Users Posts: 45,007 ✭✭✭✭Mitch Connor


    Lexio7 wrote: »
    That does not make sense.

    A common type of BIK is private health insurance.

    Are you suggesting that every single person who receives BIK for health insurance would have paid for it if they had not received this BIK.

    BIK is a non cash benefit but taxed at the cash price.

    if you have to pay tax on BIK, then why would it not be considered part of your pay?

    When I went for a mortgage years ago via a broker I got BIK stuff included (fuel allowance and some other stuff) but that was before things got clamped down upon (around 10 years ago). I ended up not taking up the mortgage in the end, so can't say for certain if there would have been problems firming everything up.


  • Options
    #8
    Sofa King Great
    Registered Users Posts: 869 ✭✭✭Sofa King Great


    Mitch Connor wrote: »
    if you have to pay tax on BIK, then why would it not be considered part of your pay?.

    Well you can't exactly use part of your health insurance or a quarter of your parking spot to make a mortgage payment.


  • Options
    #9
    Mitch Connor
    Registered Users Posts: 45,007 ✭✭✭✭Mitch Connor


    Sofa King Great wrote: »
    Well you can't exactly use part of your health insurance or a quarter of your parking spot to make a mortgage payment.

    In my old place we had an alotment of BIK 'cash' to spend on things - health insurance, gym membership, extra holidays -back when I worked there and went for a mortgage the value of this BIK package was taken into account.


  • Options
    #10
    Statusquo73
    Registered Users Posts: 11 ✭Statusquo73


    Thank you for the replies guys.
    Apparently Bank of Ireland is the only bank that counts Benefit in Kind( Health insurance) in mortgage calculations

    I heard this information today from the bank of Ireland Mortgage manager.
    I think it should be counted as @Allinall suggested.

    IF my employer wont pay I have to pay from my own pocket. Instead I am being taxed a little bit in my payslip/


  • Options
    #11
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,615 Mod ✭✭✭✭L1011


    Mitch Connor wrote: »
    In my old place we had an alotment of BIK 'cash' to spend on things - health insurance, gym membership, extra holidays -back when I worked there and went for a mortgage the value of this BIK package was taken into account.

    I worked somewhere that did that; but instead changed to just giving you the cash with salary (and hence taxed but also counting towards any mortgage calculations) on production of proof you'd paid for it - health insurance, gym, sports team subs were allowed. This is worth asking for if its a SME cause its less admin effort for the employer and potentially better for the employee.

    Only helps in a salary multiplier not a whats left stress test; but that would apply for counting BIK content anyway.


  • Advertisement
  • Options
    #12
    ec18
    Registered Users Posts: 2,700 ✭✭✭ec18


    Statusquo73 wrote: »
    Thank you for the replies guys.
    Apparently Bank of Ireland is the only bank that counts Benefit in Kind( Health insurance) in mortgage calculations

    I heard this information today from the bank of Ireland Mortgage manager.
    I think it should be counted as @Allinall suggested.

    IF my employer wont pay I have to pay from my own pocket. Instead I am being taxed a little bit in my payslip/

    is it a health insurance BIK you are trying to include?

    If you are then the bank is right not to include it. If your employer stops paying the BIK then you have a choice to buy health insurance and if you did it would be factored in your capacity to re pay the mortgage as an ongoing expense.

    However having it paid by your employer also doesn't show that you could afford a larger mortgage (which would be the point of including it).


Advertisement