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Mortgage Query

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  • 14-09-2019 9:06am
    #1
    roady rhodes
    Registered Users Posts: 64 ✭✭


    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.


Comments

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    #2
    Zenify
    Registered Users Posts: 861 ✭✭✭Zenify


    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.


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    #3
    roady rhodes
    Registered Users Posts: 64 ✭✭roady rhodes


    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.


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    #4
    Zenify
    Registered Users Posts: 861 ✭✭✭Zenify


    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.


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    #5
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    roady rhodes wrote: »
    Sorry i should have said i'm self employed.

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


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    #6
    Snotty
    Registered Users Posts: 1,298 ✭✭✭Snotty


    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.


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    #7
    roady rhodes
    Registered Users Posts: 64 ✭✭roady rhodes


    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 ?


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    #8
    bikeman1
    Registered Users Posts: 1,258 ✭✭✭bikeman1


    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.


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    #9
    antix80
    Registered Users Posts: 2,419 ✭✭✭antix80


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


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