NY_Resident
Registered User
- Messages
- 73
No, I don't believe they (or any bank) do. There are a few scenarios where RSUs are taken into account, but I haven't seen any with share options.Do they also take this bonus income into account
No, they won't stress a rate increase, but they only take about 75% of the income into account. If at that point it's cashflow negative it'll weigh on the amount you can borrow.4. I also have a mortgage on a rental property. It’s a fixed rate with about 8 years remaining. For stress test, does anybody know if AIB assumes no impact of+2% rise in rates on this repayment?
If this is a problem, reduce your contribution to the minimum required to get any matching employer contribution. That'll increase your net monthly pay. Then after you draw down mortgage, but in a lump sum to make up the difference. You have until October the following year to do it and be able to claim tax relief.1. I contribute the maximum possible under Revenue rules to my company’s pension plan (which is voluntary membership). If I run up against limits on the stress test,
No, I don't believe they (or any bank) do. There are a few scenarios where RSUs are taken into account, but I haven't seen any with share options.
No, they won't stress a rate increase, but they only take about 75% of the income into account. If at that point it's cashflow negative it'll weigh on the amount you can borrow.
If this is a problem, reduce your contribution to the minimum required to get any matching employer contribution. That'll increase your net monthly pay. Then after you draw down mortgage, but in a lump sum to make up the difference. You have until October the following year to do it and be able to claim tax relief.
You'd probably benefit from using a mortgage broker if there's anything unusual about you scenario. And if there's specific reason for choosing AIB?
Thanks misemoi - good to hear that at least one bank applies some common sense!Not the same bank, but Ulster bank indicated to me they would ignore the AVCs if required for our application as we could stop them at any time.
Just one point of clarification RedOnion - my understanding of your response is that you are not aware of any banks who take account of average stock option income exercised and realised in the arriving at "Salary" for the purposes of applying the 3.5 factor? Is my understanding correct? ThanksNo, I don't believe they (or any bank) do. There are a few scenarios where RSUs are taken into account, but I haven't seen any with share options.
No, they won't stress a rate increase, but they only take about 75% of the income into account. If at that point it's cashflow negative it'll weigh on the amount you can borrow.
If this is a problem, reduce your contribution to the minimum required to get any matching employer contribution. That'll increase your net monthly pay. Then after you draw down mortgage, but in a lump sum to make up the difference. You have until October the following year to do it and be able to claim tax relief.
You'd probably benefit from using a mortgage broker if there's anything unusual about you scenario. And if there's specific reason for choosing AIB?
Yes, that's my understanding. Assuming it's options and not RSU.Just one point of clarification RedOnion - my understanding of your response is that you are not aware of any banks who take account of average stock option income exercised and realised in the arriving at "Salary" for the purposes of applying the 3.5 factor? Is my understanding correct? Thanks
It's usually clear enough on payslip that it's an AVC. I know on my own there are 3 figures: Core contribution, matched AVC, and AVC.I'll get a letter from HR outlining that pension contributions can be reduced to zero, and see if that helps.
It's actually PSUs, but delivered via nominal cost options i.e., options to buy a share at a strike price close to zero (so options value behaves exactly the same as underlying share value as payoff curve is the same). So in reality, they are similar to RSUs but with company performance conditions attached. Just writing this sentence makes me assume that no bank is going to dig into this enough to feel comfortable including!Yes, that's my understanding. Assuming it's options and not RSU.
Options only have a value if the share price is above the option strike price.
It's usually clear enough on payslip that it's an AVC. I know on my own there are 3 figures: Core contribution, matched AVC, and AVC.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?