Private Residental Mortgage bank who will take into account retained profits and rental income

[DublinRoaming]

Of your €4.3k, you have a mortgage of €1350 (jointly and severally liable) and assuming a 25 year term, you want to take on another mortgage of €1650. That only leaves you with €1300 to live on and maintain a €600k property. Even after lending limits, it should be clear from an affordability perspective that your €70k income is not sufficient

i only take 35k from my company ( company takes in ~105k PA) i could take a lot more than 35k .. this was the my initial question .. do the bank take into account year on year retained profits into account

 

[_OkGo_]

I understand that and so does the bank but you seem to be missing the point. They are not interested in what you can/could  do,
they are interest in what you have done.

It's easy to say you could take more but your last 2-3 years of accounts don't say that.

They will ask why you have retained earnings. Are you concerned about a drop in income, what are your plans for the retained earnings, will it conflict with your ability to pay this mortgage etc etc.

the my initial question .. do the bank take into account year on year retained profits into account

No affiliation but this article gives a very clear answer of "maybe, it depends". It is lender specific so your best bet is to find a broker that deals with most lenders and have plenty of experience with non-standard applications like your own

Self Employed Mortgage Applicants - here's what you need to know - doddl

Self employed director or sole trader looking to take out a mortgage. Speak to our team of expert advisors who can help.

doddl.ie

 

[DublinRoaming]

What €65K?
This figure was never mentioned before the above?
Again a lack of clarity in the thread that is confusing.

the 65k was mentioned by another poster .. i did not mention it ...
its the money that i leave in the company

As I say, very confusing. And I'm not the only one:

yes i agree .. people are asking confusing questions


spoke to

But then how is there "PAYE, tax" on that if it's retained in the company? And how/why does €65K become €50K? And if it's €50K then why mention €65K at all....?

what PAYE tax ? there is corporation tax.. and the company pays the PAYE on my 35k is that what you mean ?

But then how is there "PAYE, tax" on that if it's retained in the company? And how/why does €65K become €50K? And if it's €50K then why mention €65K at all....?

no idea what you mean here to be honest you need to ask the people that mention 65k and 50k not me ..




spoke to a broker there are 2 banks who take into account rental income and retained profits
also a plan B of re-mortgage my unencumbered house at 50% which gives me 160k
then get mortgage of 160k
this will give me the ~320k that i need

 

[ClubMan]

what PAYE tax ?

I don't know - it's what you said here:

yes i increase salary btw its not really 65k there is paye,tax , corporation tax, business expenses(minimal) prob round 50k it just sitting in current account i was thinking about buying another BTL in a few years if it keeps on growing

no idea what you mean here to be honest you need to ask the people that mention 65k and 50k not me ..

This was also you:

yes i increase salary btw its not really 65k

Totally confusing thread...

 

[DublinRoaming]

They will ask why you have retained earnings. Are you concerned about a drop in income, what are your plans for the retained earnings, will it conflict with your ability to pay this mortgage etc etc.

im not worried about drop in income . .before i get out of bed i have 2k in rent coming in and then another 2300 from my salary from the ltd company and another property paid off in 5 years..

i never needed any more than that a month , why take out another ~4000 extra from the company .. its only going to cost a load of tax .. i always looked at it as ~4300 was fine each month .if i needed more i can take it out .. but i never did .

.i was going to let cash in company build up to say 200k then get the company to buy a BTL with a low LTV..

what are your plans for the retained earnings, will it conflict with your ability to pay this mortgage etc etc.

not sure what you mean by this ..

Totally confusing thread...

Ok thanks for your input and time ,all the best !

 

[DublinRoaming]

No affiliation but this article gives a very clear answer of "maybe, it depends". It is lender specific so your best bet is to find a broker that deals with most lenders and have plenty of experience with non-standard applications like your own

thanks for that ill check it out