Only income originating in the Republic of Ireland or Northern Ireland by applicants with a right to reside and work in the State will be reckonable in calculating borrowing and repayment capacities.
Eligibility for the scheme is dependent on an applicant’s gross income being within the relevant income ceiling. As set out below, gross income is deemed as being the income (including relevant social welfare payments) reported for the payment of tax in the previous tax year.
The income details provided by the applicant(s) must be supported by the documentation set out in Appendix 1 (for applicants who are in PAYE employment, contract employment, self-employed or a company director).
Contract Employment Income
Contract income will be considered in repayment capacity provided:
- The applicant works in an industry where contract income is regarded as common, e.g. (retail, hospitality, education, health, and financial services)
- The applicant has been on contract in similar industry for at least the last two years or, where recently commenced a contract, has been employed in a similar industry for a minimum of the previous two years before their application date.
- Where an applicant(s) contract has three or fewer months to expiry and the contract provider has given written confirmation that the contract is to be renewed.
Further evidence of contract employment may be sought by the Local Authority.
Treatment of Additional/Temporary Payments for Repayment Capacity
There are limitations on the amount of payments above basic earned income (such as overtime, bonus, subsistence, commission, allowances etc.) that can be allowed for repayment capacity.
State benefit payments
Generally, social welfare payments would not be considered as part of repayment capacity. However, certain long-term State benefit payments may be considered as repayment income only where the main income source is of an earned nature (i.e. more than 50% of the income that forms the full Home Loan application is from a source other than State benefit payments).
Long-term State benefit payments considered are:
- State Pension (Contributory).
- State pension (Non-Contributory).
- Widow's/Widower's Pension.
- Blind Pension.
- Invalidity Pension.
- Disability Allowance
In calculating borrowing and repayment capacity, 100% of the above long-term State benefit payments will be reckonable.
The long-term nature of the payment must be confirmed by the Department of Social Protection or other relevant Government Department.
You must include maintenance payments where you are responsible for paying maintenance to a third party, and where there is a maintenance order in place, a copy of the maintenance order will be required. Similiarly, where you receive maintenance payments, which are the subject of a maintenance order, these payments must be evidenced. If the maintenance is not paid directly to the applicant's bank account, a copy of the maintenance order must be provided.
Where either party to a mortgage application is separated or divorced, the following details should be supplied with your application;
- The extent of maintenance being received or paid by the applicant,
- The circumstances under which the maintenance payments can cease,
- Details of any payment(s) to be made in respect of the removal of spousal/parternship rights to the existing family home or other property which could have a bearing on the ability to repay the mortgage.