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Self Employed Mortgage

  • 20-02-2018 3:42pm
    #1
    mollycasey
    Registered Users Posts: 74 ✭✭


    Hi

    Has anyone experience on applying for a mortgage while self employed?

    Myself and my partner are looking to move house and we have have €190,000 equity in our current property and looking to purchase a house not more than €350,000 - the issue is he is self employed as a sole trader since mid 2015 and i have in full time permanent employment with a gross salary of €32K - when we applied 5 years ago for our first mortgage we were both in PAYE employment and it was so much easier. I feel a black mark goes against you if you are self employed.

    I have sent an application to KBC so fingers crossed but if anyone has any tips on how to get it passed i would greatly appreciate the advice.


Comments

  • #2
    DublinWriter
    Registered Users, Registered Users 2 Posts: 9,557 ✭✭✭DublinWriter


    It's a nightmare. Not sure about Sole Trader, but running a Ltd. company they look for the audited accounts for the past three years. Many small Ltd. companies rarely opt to submit fully audited accounts.

    I was even asked to supply three years of audited accounts for an unsecured car loan of €20K.


  • #3
    mollycasey
    Registered Users Posts: 74 ✭✭mollycasey


    DublinWriter wrote: »
    It's a nightmare. Not sure about Sole Trader, but running a Ltd. company they look for the audited accounts for the past three years. Many small Ltd. companies rarely opt to submit fully audited accounts.

    I was even asked to supply three years of audited accounts for an unsecured car loan of €20K.

    Thanks DublinWriter - i do have audited accounts and i have submitted them but i know they are going to come back with loads of queries :mad:


  • #4
    Squall Leonhart
    Closed Accounts Posts: 1,794 ✭✭✭Squall Leonhart


    I did it last year with Bank of Ireland. Self employed working via an umbrella company as director of a limited company. There was a few hoops to be jumping through alright, but I got approval. Almost as soon as I drew down the mortgage I stopped contracting and became a PAYE worker!


  • #5
    stryker mcqueen
    Registered Users Posts: 1,287 ✭✭✭stryker mcqueen


    DublinWriter wrote: »
    It's a nightmare. Not sure about Sole Trader, but running a Ltd. company they look for the audited accounts for the past three years. Many small Ltd. companies rarely opt to submit fully audited accounts.

    I was even asked to supply three years of audited accounts for an unsecured car loan of €20K.

    Is it not 2 years with BOI?

    My wife is self employed and we have a deposit saved and now in the process of applying, she has just received her clearance, audited accounts etc, I am already shattered trying to get all of our ducks in a row.


  • #6
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    Some banks only require 2 years accounts but all of them require previous 2/3 years P21 from Revenue Commissioners which is a statement of Income for previous year.


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  • #7
    mollycasey
    Registered Users Posts: 74 ✭✭mollycasey


    I have an application gone into KBC and i also spoke to Pepper Money yesterday and they have given us approval in principle but won't do a full application until we find a property! I would prefer to know i have the money secured before we go and start bidding! One thing i noticed is BOI who we have our current mortgage with won't let us use the equity as our deposit or won't take the current mortgage repayments into proof of payment capacity they want to see separate savings...whereas the other banks haven't looked for this.

    I am keeping everything crossed now for approval.


  • #8
    mollycasey
    Registered Users Posts: 74 ✭✭mollycasey


    Another question on this - we are still waiting on a decision from KBC but they rang my solicitor yesterday looking for a copy of their PI Insurance - my solicitor said they have never been asked to furnish this for a mortgage application before - anyone here ever come across it?


  • #9
    Janeybob
    Registered Users Posts: 6 ✭Janeybob


    Hi..just wondering how you got on with your application as we are in a very similar situation.


  • #10
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    DublinWriter wrote: »
    It's a nightmare. Not sure about Sole Trader, but running a Ltd. company they look for the audited accounts for the past three years. Many small Ltd. companies rarely opt to submit fully audited accounts.

    I was even asked to supply three years of audited accounts for an unsecured car loan of €20K.

    This is not true. They ask for 2 years of signed accounts - NOT audited. Most small companies are audit exempt. They do ask for a tax-clearance certificate as well.

    They can check the accounts online via CRO anyway.

    Same rules for BoI and KBC - source = I recently applied to both.


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