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Mortgage

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  • 23-06-2020 3:26pm
    #1
    The_Fitz
    Registered Users Posts: 330 ✭✭


    Scenario:

    Someone has just set up their own company as a limited company. They are going to be paid PAYE as normal from the company that they own and have just started.

    This is considered to not be self employed and is considered to be employed in the private market?

    How long do you need to be employed roughly before a bank would consider a mortgage?

    As the person is the owner of the company, (and although the aim would be to have a standard salary) how does a bank look at differing amounts coming in per month? Would it be the total over the year and there's your annual salary?

    If anyone can give any insight that would be great.

    Cheers,

    Fitz


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    #2
    TheBoyConor
    Closed Accounts Posts: 3,292 ✭✭✭TheBoyConor


    Self employed.

    Lender will consider it a much higher than normal risk.
    Don't expect much.


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    #3
    The_Fitz
    Registered Users Posts: 330 ✭✭The_Fitz


    TheBoyConor wrote: »
    Self employed.

    Lender will consider it a much higher than normal risk.
    Don't expect much.

    Thought that might be the case, had convinced myself though that as PAYE it might be considered normal employment.

    I guess if the company has only just been set up then you'd be looking to wait 2-3 years minimum?


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    #4
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    2 years of accounts.
    You're self employed


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    #5
    The_Fitz
    Registered Users Posts: 330 ✭✭The_Fitz


    ELM327 wrote: »
    2 years of accounts.
    You're self employed

    Cheers.

    How do banks look upon one person getting the mortgage in their name? I.e. the spouse of the company owner?


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    #6
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    The_Fitz wrote: »
    Cheers.

    How do banks look upon one person getting the mortgage in their name? I.e. the spouse of the company owner?
    If you are married this will not be possible.


    If you are not married then this is ok (it's what I did when buying first property due to meeting the 3.5X on my own)


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    #7
    Panic Stations
    Registered Users Posts: 251 ✭✭Panic Stations


    In a similar position myself OP.

    They won't look at you until you've 3 years worth of accounts behind you and they will then take your average salary over those 3 years to determine what they can lend you.

    Some banks will consider 2 years worth of accounts but again this will depend on the type of business you own.


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