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Buying a house when self employed

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Comments

  • Registered Users Posts: 28,039 ✭✭✭✭drunkmonkey


    Source? No indication of rates being increased to mortgage holders at the moment imo.

    In fairness you don't expect me to tell you who what from bank and what position they hold. Just told to expect it in the next year.


  • Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Yes, if you're presenting it as fact.

    Does this mystery friend also know what the ECB have planned for interest rates?


  • Registered Users Posts: 28,039 ✭✭✭✭drunkmonkey


    Bond markets have it factored in from 2022 I think...ERSI has been saying the economy can handle it now. It's been mooted in the papers as well.


  • Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    So your friend has told you what their forecasts/estimates/guesstimates are.

    That's a bit different.


  • Registered Users Posts: 28,039 ✭✭✭✭drunkmonkey


    No they hold a position in an Irish bank and we were discussing interest rates and they told me factor it in for the next year, I'll take the advice.
    Point is don't over stretch yourself if your only starting off.


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  • Registered Users Posts: 8,184 ✭✭✭riclad


    I think you need 2-3 years of accounts , made by an professional accountant to prove you can afford to borrow x amount .
    Also whether self employed or working for a company you will need to save up a deposit 10-20 per cent of the house purchase price .
    You should talk to a mortgage broker.
    It also depends on how much savings you have ,
    how much income your company makes ,
    basically the bank needs to know your financial status .
    i,m not saying every person needs to have accounts to get a loan.
    Say you want a aib loan, open an account there , put in x amount per month.
    I think financial experts say take out a private pension as you get tax credits depending on how much you put into the pension per month.


  • Registered Users Posts: 251 ✭✭Panic Stations


    riclad wrote: »
    I think you need 2-3 years of accounts , made by an professional accountant to prove you can afford to borrow x amount .
    Also whether self employed or working for a company you will need to save up a deposit 10-20 per cent of the house purchase price .
    You should talk to a mortgage broker.
    It also depends on how much savings you have ,
    how much income your company makes ,
    basically the bank needs to know your financial status .
    i,m not saying every person needs to have accounts to get a loan.
    Say you want a aib loan, open an account there , put in x amount per month.
    I think financial experts say take out a private pension as you get tax credits depending on how much you put into the pension per month.

    I'm currently with AIB atm and have been saving with them for the past few years so theres that evidence there. My OH and I have the deposit saved. It's really just a matter of getting approval and seeing what our options are.


  • Closed Accounts Posts: 3,220 ✭✭✭cameramonkey


    If you have a BOI account they might do two years accounts.


  • Moderators, Business & Finance Moderators Posts: 17,592 Mod ✭✭✭✭Henry Ford III


    You can get a mortgage with 2 years accounts I'm told. Shop around.

    p.s. Self employed don't need an audit.


  • Registered Users Posts: 2,217 ✭✭✭deandean


    This was 15+ years ago, but I got a decent-sized mortgage 9 months after leaving a regular job and starting my own company.
    My accountant did up a set of 'management accounts' for the 9 months I was trading.
    I did a presentation to the bank about my new company, very similar to the presentation I made to new clients.
    It helped that I had a couple of 'blue chip' clients.
    I got the mortgage without too much fuss.


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  • Closed Accounts Posts: 946 ✭✭✭Phileas Frog


    p.s. Self employed don't need an audit.

    That depends on the nature of the company. If it's a sole trader, no, but if it's a Ltd or DAC it's a different matter


  • Registered Users Posts: 10,198 ✭✭✭✭JohnCleary


    We went for a mortgage application for the craic a few months ago, i'm self-employed, herself employed.

    Had approval in about 3 days.

    Thankfully we don't need one.... we just wanted to check *could* we get one if needed.

    That said, we had a 70% deposit (savings) of our mortgage application price. I was asked for 3 years of accounts / current tax cert etc.


  • Registered Users Posts: 251 ✭✭Panic Stations


    Thanks all! Really helpful stuff!

    Always good to hear so many different stories! Give me hope. haha


  • Registered Users Posts: 310 ✭✭myate


    Also self employed, for 13 odd years so accounts not a problem, although the bank wanted my most recent (2018) which normally wouldn't need to be done until November, but my accountant did them up, I gave them to the bank, approval there & then in branch! They'd given us a rough figure & said come back with 2018 accounts & they'd give approval in principle in writing. They kept their word & actually increased the amount based on the accounts! We have a deposit & equity in the house we'll be selling which helps.


  • Registered Users Posts: 251 ✭✭Panic Stations


    myate wrote: »
    Also self employed, for 13 odd years so accounts not a problem, although the bank wanted my most recent (2018) which normally wouldn't need to be done until November, but my accountant did them up, I gave them to the bank, approval there & then in branch! They'd given us a rough figure & said come back with 2018 accounts & they'd give approval in principle in writing. They kept their word & actually increased the amount based on the accounts! We have a deposit & equity in the house we'll be selling which helps.

    Was this recent enough and with what bank?


  • Registered Users Posts: 310 ✭✭myate


    Was this recent enough and with what bank?
    Just last week with Ulster. (Should have said although implied, they wanted 2018 accounts, aswell as 2016 & 2017).


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