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Self Employed Mortgage

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  • 17-10-2018 12:30pm
    #1
    SpaceRocket
    Registered Users Posts: 233 ✭✭


    Hi,

    We are looking to apply for a mortgage soon, partner is PAYE permanent, I however have been self employed for just under a year. Most banks seem to want 2-3 years of tax returns for the self employed. This would mean we wouldn't be able to apply for a mortgage until 2021?!

    Are there any exemptions to this rule?? I have a set amount that my business takes in each week and has done since day 1, with accounts to prove it. It is a very busy industry so i have no shortage of work, and regularly have to turn down jobs.

    Seeing as my income is non variable, is there any way the 3 years proof of accounts can be exempt, and instead income protections drawn up, along with what I have so far in my accounts?

    We have been saving regularly and have enough for a deposit now so are hoping to buy ASAP.

    It is an option for me to return as a PAYE worker for the 6 months, but it would be extremely disruptive and isn't really an option I think I would take...

    Feel really stuck at the minute. Thanks.


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    #2
    kmfrob
    Registered Users Posts: 25 ✭kmfrob


    Well I don't have an answer to your question, but I would be interested in hearing what other people have to say.

    I too am self-employed, but luckily enough for me we got a mortgage while I was still salaried. The ironic thing is that since going self-employed my earnings far outstrip what they were when I was in my previous job, but the bank really wouldn't care about that.

    My main advice to you would be just keep saving. If you are taking in plenty of work and money then just keep building a bigger deposit. The smaller your mortgage the better your life will be in the long run!

    Good luck!


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    #3
    AppleBottle
    Registered Users Posts: 1,421 ✭✭✭AppleBottle


    Surely it would be the last three years of accounts they would want? So 2017, 2016 and 2015? Maybe you haven’t been trading for three years so instead I would imagine they would just want proof of income before you started your business.


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    #4
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,505 Mod ✭✭✭✭johnnyskeleton


    They will want 2/3 years of accountant certified accounts. They will not accept anything else as proof of earnings. Even when your self employed income goes though that banks own accounts.


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    #5
    JohnCleary
    Registered Users Posts: 10,210 ✭✭✭✭JohnCleary


    Just been through this - 3 years certified accounts (15 16 17) and also Revenue 'Notice of Assessment' for these years (now changed name but you'll find it in ROS... something along the lines of "Full Assessment Acknowledgment"

    AIB btw


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    #6
    BailMeOut
    Registered Users Posts: 2,985 ✭✭✭BailMeOut


    I am a sole trader and needed my 2015, 2016 and 2017 "Form 11", "Chapter 4" and "Income and Expenditure statements" for the applications and could have used 2014 instead of 2017 and they average over these three years to determine your income.

    Were you a PAYE working before you were self employed as I would think you can use these numbers as well?

    I also dealt directly and have approval with AIB initially but now using a broker as AIB will not approve 3.5x earnings for loan amount.


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