Proving income

I am self-employed and only recently returned to Ireland. Due to living in a number of jurisdictions for short periods of time over the past several years, my tax affairs are very complex and I am in discussions over exactly how much I owe to whom. I have started a company last month in Ireland offering professional services and have a steady income from a few large clients.

I have some savings and would like to get a mortgage to buy a house here at a 50% LTV. Is there any lender who will lend to me without tax declarations from all the six jurisdictions I have lived in over the past three years? In some cases, they have not got round to even sending me a social security number. I left Ireland in 2001 and I have tax certs for up to that time.

I had a mortgage with an Irish lender on an investment property that I paid off early in 2003.

All earnings were returned to my Irish account during the past three years and I have statements showing regular income during this time.

Will I get a mortgage from anyone now or do I have to wait untill this is all resolved?

We returned from the States, and got approved for a <50% LTV mortgage on the basis of our savings record (had to show 6 months US bank records). I too was self employed, and showed copies of my tax records for previous two years. I did self-assessment through a computer tax program, i.e. there was no accountant, and hence no-one to sign off on my tax compliancy, which seemed to be a bit of a problem, but the bank accepted this on the grounds that this is the way in the US. It was a nervous time getting all the documents together, but the bank were willing to substitute "foreign" forms for the more usual Irish forms.

Good luck

-DeliaQuad

As I am living in a tax free jusrisdiction at the moment I just told them that I consequently had no tax forms to give them and they just accepted that. Do the banks actually look at your tax compliance? I know they ask for P60's but I always assumed this was for evidence of salary not tax compliance.

Hi there,

If all else fails your could try a Specialist lender like Start or Ge, who will lend with self certification. The interest rate is higher i.e. base rate of 4.55% however they could be used them as a stop gap until you have your affairs in order. Self employed with little records find it very hard to get a mortgage through main stream lenders, all income has to be proved.

Suggest you talk to a broker like REA perhaps who may be able to assist. I was in a similar (although less complex) situation than you and I found them helpful in helping me to prove my situation and ability to fund a mortgage.
One of the Frequent Posters here Sarah may be able to advise, otherwise give them a call.

Hi Curtains. Do you have an accountant in Ireland? If so, and if they are able to confirm your income is sufficient to repay the mortgage (without declaring your actual income) then, all things being equal, you would be OK for a mortgage at a 50% advance at 1% over ECB. I can be contacted on 01 8956310 or swords@rea.ie

Sarah

www.rea.ie

Thanks for the advice. I am feeling a lot more confident about getting finance to buy a house now.

I can think of two reasons why lenders are keen to see details of tax paid: fear of a tax bill impeding borrower's ability to repay loan
desire to comply with money laundering guidelines

I am willing to accept a higher rate and switch to a cheaper provider in a couple of years when I have been resident here a few years.

You don't necessarily have to accept a higher rate Curtains.....

Sarah

www.rea.ie

I'll second that- we got the standard AIB 2.75% first year fixed. I too was sweating over these issues, but in hindsight I can see that the bank were satisfied I was not facing a big tax bill, and was not money laundering, and so I did a standard application.

For their benevolent outlook on my character I get to pay them tens of thousands of euro over the next few years...

-DeliaQuad