How To Remortgage with FIS included income

R

Remortgager

Guest
I work part-time, but my income is supplemented with FIS. I have a very low mortgage (37k) but high free equity as the house is worth over 400k. I have never been behind in paying back my mortgage, or in the red. I have approached a Bank to remortgage to 100k, to use some money for a foreign investment, with guaranteed rental. Also I wish to pay off my car loan. Altogether this would reduce current monthly outgoings, generate some income and begin a cycle where I would be able to remove the present reliance on family supplement. But no, the Bank says it will only take my PAYE income into consideration, even though this is not even half my income. I have not applied to the underwriters as the mortgage adviser did not hold out much hope and I do not wish to be refused, as it is a question on some applications. Is there any way around this constraint, whilst still being able to avail of a tracker rate? :/
 
Remortgager said:
I work part-time, but my income is supplemented with FIS.
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What is your normal income and what FIS payment are you receiving?
to use some money for a foreign investment, with guaranteed rental.
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That is a significant risk for you and the lender. Remember that many "guaranteed rental" investments have the price of the guarantee built into the selling price which is inflated above the normal market value of an equivalent property in that country. And there are significant risks of the guarantee disappearing if the company involved disappears etc. Are you sure that foreign property investment is the most approrpriate investment for you in your current situation?
Also I wish to pay off my car loan.
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Note that this could mean paying for your car over decades rather than years and at a higher overall cost even if the interest rate and monthly payments are lower. Unless you accelerate repayment of the car loab portion of the mortgage topup.
But no, the Bank says it will only take my PAYE income into consideration, even though this is not even half my income.
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I suspect that the lender coule be doing you a favour here and this should encourage your to reappraise your tentative plans to check for risks.
 
Thank you for your advice. However, I have done a lot of research into this over the last 6 months, and feel this is the way to go. Several of my family have been investing overseas over the last 2 years, and have seen excellent rewards on their initial investment as well as the guaranteed rental doing what it says on the tin. I would save over 200 euro a month by remortgaging and paying of what is left of the car loan. In five years, I should like to relocate, at which time I could either sell the current property in Ireland, or rent it out. The rental expected for a property in my area currently is 250 euro above the mortgage repayments for 100k.

My family will not require as much of my time after 5 years, and I can work full time. I was trying to keep the initial query relatively short and did not fill in these details. But you may rest assured these plans are not tentative and are backed up by research over the past years, more intensively over the last 6 months. There must be some way, other than selling, to realise the equity in my home, keeping in mind I have lived within my means and always made the books balance.
 
Lenders will not take state payments into account when calculating the amount you can borrow, neither will they take income from outside the State. They will take room rental though. The other option is to get someone to guarantee the remortgage - this must be a relative with sufficient income to cover their own mortgage/living costs as well as your mortgage.

Sarah

www.rea.ie
 
Thank you Sarah, I had thought of that. My relative has an interest in increasing his own property portfolio, but may help by going guarantor. It just seems ridiculous when I have proven I can survive in the worst possible scenario, with a lot less money than I am on now even, and as I am being freed from domestic constraints yearly, things are improving financially all the time, no childcare, etc. This remortgage would lighten the load in the short term when my expenses are highest and earning power is most curtailed and help me plan what I want to do in the future.
 
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