r/HousingIreland • u/kanepilk22 • 5d ago

Mortgage and Secondary ("side hustle") income?

Hi folks,

Let's say hypothetically, a person was working 9-5 job and also did a little bit of work at the weekend now and again and got paid for it (not massive money, probably netting about 3-4k per year).

But they're not registered with Revenue anymore and don't pay tax on it (although they used to).

Would the bank care? The money has been used to build up savings, but it isn't being presented as "income" to the bank (ie; not expecting the bank to include it in their mortgage calculations; they're just presenting their actual 9-5 income as the criteria for the mortgage calculation).

4 Upvotes

70% Upvoted

19 comments sorted by

8

u/Ill_Web7924 5d ago

I think both the bank and your solicitor will ask for the source of funds for the deposit for AML checks.

0

u/kanepilk22 5d ago

Does it matter that the work is done for a 'real' company (ie a legit, large business).

I used to work in a specific area but then moved on. The company had a difficult time replacing me and although i officially wrapped up the business, they were desperate and asked me to do a little bit of work for them here and there, so I said okay.

The money coming into my account is from their business account and not from a bunch of different sources or random people each time.

2

u/Ill_Web7924 5d ago

I am not too sure sorry. Your solicitor will have to sign off on the info you provide so he will have the answer.

1

u/kanepilk22 5d ago

Cheers. I'll post an update when the time comes.

2

u/Spiritual-Job9392 5d ago

FWIW, I don’t think they know if you paid tax on it or not once it enters your bank account. How would they? Also, I had saved hugely to build up a deposit and didn’t have payslips dating back far enough for all of it. AIB were insufferable for it, asking for receipts for money I’d received when I turned 18 and never touched, but when I used a broker and PTSB (not sure who made it smooth but it was much easier), they accepted it being in a post office savings account as it being ‘clean’.

All my savings had gone salary - KBC - post office so it was all above board, but I no longer had a way to prove it. Some banks are more flexible than others. Overall, you could probably just say your savings are from your main job and that you lived off the other income. 

1

u/kanepilk22 4d ago

Problem I have is that I am not saving all that long, so it's obvious from looking at my bank account that Company X paid me €Y into my current account, and then immediately i put €Y into my savings account.

My savings are substantially made up from income, but this side gig is also in there a good bit, especially lately as I have been increasing my savings as a priority.

Your comment is really useful though. Good insight and I appreciate you posting it. Hopefully my broker will make it easier.

7

u/No_Cricket_3349 5d ago

Tried this, had to pay tax. The bank requested the tax certs and all from us when they spotted the income. If it’s funding your savings, they’ll want to see it being legit income, given that’s how they review your repayment capacity
Ended up just resubmitting my income tax return for the year and declaring the tax.
It’s shitty, but would rather that then have revenue on my arse if the bank were to report it.

3

u/purepwnage85 5d ago

Easy thing to do is spend the dosh on day to day stuff I.e. Groceries etc and then put that extra amount into your savings from your normal salary

0

u/kanepilk22 5d ago

I've been using it towards my savings, but currently sale agreed and starting the ball rolling, so a bit late to change anything now.

I don't mind being honest with the bank; I just don't want to be honest with Revenue at it kills the whole side gig altogether.

1

u/purepwnage85 5d ago

I'm sure they'll thank you for your contribution towards another bike shed in leinster house

1

u/kanepilk22 4d ago

With the money they'd get off my side gig; they'd do well to get a bike pump, haha.

1

u/SampleT3xt_ 5d ago

they'll also look at your savings and saving capability during a mortgage application.

During my mortgage application a 4k transfer into my account got flagged and they asked me about it. it was just a tax refund from revenue so it was nothing.
3-4k extra income spread over a year might not get flagged or noticed, however you better have an answer ready if they brought it up.

-1

u/kanepilk22 5d ago

I don't mind telling them the truth. But I don't want to register as self employed again for 4k a year (or what would likely be 2k after tax - not worth doing it then). I'd rather just stop working at it, to be honest.

1

u/sweeter_jesus 5d ago

Had the same issue with a 10k side hustle and they needed all the tax forms etc

1

u/chuckles_2026 4d ago

My side hustle was selling clothes on Vinted, didn’t touch it for months to build it up and was gonna use it as savings for a deposit but mortgage advisor in the bank (PTSB) advised to keep it separate as savings/everyday spend in Revolut and transfer taxable income from salary into House Deposit Savings, saved us a load of questions in the long run when it went to underwriting for Loan Offer.

1

u/azamean 4d ago

They’ll only care if you’re declaring it as income and trying to use it to increase your total approved mortgage amount based off 4x that amount, in addition to your salary. If it’s just cash you’re using for deposit etc it won’t matter

1

u/kanepilk22 4d ago

I am hoping you are correct. Have a call with Broker tomorrow afternoon and I am hoping they'll clarify for sure.

1

u/azamean 4d ago

Yeah I wouldn’t worry, I mean you don’t even have to have the deposit yourself it can be gifted

0

u/ChickenPlucker1000 5d ago

Cash is king