Mortgage Query

roady rhodes · 14-09-2019 9:06am #1

Hi

Anyone know if revenue/banks will let me use 6 months of accounts when applying for a mortgage?

My income is higher in 2019 than it was in the past 2-3 years so if i wanted to buy a house now i could get a bigger mortgage if i used my most recent 6 months.

Thanks.

Zenify · 14-09-2019 9:15am

Your employer will have to fill out a form and state how much you earn. Your pay slips just back it up really. If they ask for 1year statements they will ask why your wages changed.

Your employer stating that you have a guaranteed income per year of x amount is mainly what they are looking for.

roady rhodes · 14-09-2019 9:28am

Zenify wrote: »

Your employer will have to fill out a form and state how much you earn. Your pay slips just back it up really. If they ask for 1year statements they will ask why your wages changed.

Your employer stating that you have a guaranteed income per year of x amount is mainly what they are looking for.

Sorry i should have said i'm self employed.

Zenify · 14-09-2019 3:18pm

roady rhodes wrote: »

Sorry i should have said i'm self employed.

I'm not self employed so I dont know the process. I did have a complicated application and I had a good broker that helped me out.

BrokenArrows · 14-09-2019 7:09pm

roady rhodes wrote: »

Sorry i should have said i'm self employed.

Self employed mortgages use an averaged income over a period of time.

Snotty · 14-09-2019 7:16pm

If it's only in the last 6 months then it won't be part of your tax returns yet, your year end accounts are what the bank will be looking at, unfortunately saying you earned more in the last 6 months won't really have a bearing, many self employed people have seasonal incomes, most of their years wages could be earned in a short period of time.
Definitely engage a mortgage advisor who has experience of self employed mortgage applications.

roady rhodes · 16-09-2019 8:43pm

BrokenArrows wrote: »

Self employed mortgages use an averaged income over a period of time.

So would i be able to use the first 6 months accounts of 2019 and the previous 24-30 months or will bank look for year end accounts only ?

bikeman1 · 16-09-2019 9:49pm

The bank will ask for your Notice of Assessment which comes from your Income Tax return when it is filed. As mentioned already, plenty of businesses have seasonal work. You could have a terrible 6 months / lose your main contract. The bank will only look at what you have officially submitted to Revenue.

They will also look for tax clearance and a letter from your accountant confirming all is in order. After that they will average your earnings over 3 years, due to the potential volatility of being self employed.

antix80 · 16-09-2019 9:51pm

Yea.. And the potential to window-dress if it's a cash business.

Mortgage Query

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