Are you self employed and looking for a Mortgage Broker
that understands your financial circumstances?
A self-employed mortgage is specifically designed for people who work for themselves rather than being hired by a company or organisation. These borrowers might include freelancers, business owners, contractors, or anyone who earns income through self-employment. Obtaining a mortgage as a self employed individual can be more challenging due to the nature of their income, which may be less predictable and more difficult to verify compared to traditional salaried employment.
To qualify for a self-employed mortgage in Ireland, you need to meet normal mortgage underwriting criteria and also provide self employed documents. Here are the steps to improve your chances of getting a self employed mortgage:
Seek advice from a MortgageLine adviser who specialises in guiding self-employed mortgages. We advise you through the application process and help you find the best mortgage deals in accordance with your financial situation.
There are many advantages to being your own boss, however if you are self employed then that can make getting mortgage approval a challenge.
Different banks and mortgage lenders have different criteria and requirements for self employed clients. It can be hard for you to find the bank that suits your particular circumstances.
It’s not impossible by any means, but finding the right mortgage lender and getting mortgage approval can cost you time and money. At MortgageLine we use our expertise to find the right mortgage lender and work with you to get your mortgage approved. Even the most successful business owner needs help when it comes to getting a great deal on their mortgage.
Here at MortgageLine we have many years experience helping self employed clients get mortgage approval. We will take you through every step of the application process and negotiate with a range of mortgage lenders to secure the right mortgage for you..
Whether you are a sole trader or have a limited company or are a contractor with less than 2 years accounts then we can help. We will find a lender who will assess your application on its individual merits.
We have access to mortgages that are not available on the main street and will seek the best and most suitable deal for you.
Self-employed – sole trader or partner
Contractors such as engineers, medical or IT professionals
Limited Company Directors
Being self employed can make it more challenging to get a mortgage but certainly not impossible, far from it. If you have chosen to go self-employed for the flexibility and freedom that it can offer then it may be difficult to meet strict mortgage lending criteria and affordability checks, even when your business is on the up.
The good news is that there are mortgage lenders that can be more flexible and understanding of the self employed situation. However it is really important the mortgage adviser you work with takes the time to understand your business and how you work. The difference between a mortgage approval and a mortgage decline can be as simple as something not being explained correctly and comprehensively. That is why it is essential to work with a professional
Mortgage broker who can find the mortgage that is right for you.
To secure a mortgage it is essential that you explain and provide proof of income. The most common ways for a self employed mortgage seeker to prove income are as follows:
These will clarify the way your income is structured including retained profits, dividends, director’s loans and shareholders funds. Accounts also give a structured account of year end finances and an indication of financial well-being.
The mortgage lenders will look at your income and outgoings by checking your business and personal bank statements. The overall health of your bank statements will show the bank you have the capacity to make the new monthly mortgage repayments.
If you are getting regular income from the business then these will show proof of that. If you are a sole trader you may not have some of these and that’s ok. *(EDS is a revenue employment details summary. Formerly known as a P60)
This certificate indicates your net profit before tax for the year and gives the mortgage lender the information they need to complete the affordability assessment. This document is available from revenue.ie. If you do not have access to revenue.ie then your accountant will be able to provide this.
Your accountant will provide you with a letter to confirm your tax affairs are all up to date.
Being self-employed can be seen as risky, as far as a mortgage lender is concerned, because it can be difficult to establish your income and some traditional lenders may assume that you may struggle to make your monthly repayments.
The fact is that the self employed mortgages available to you are conventional mortgages rather than a special financial product specifically for the self employed. However you will be expected to jump through more hoops to demonstrate your financial health and income. Self employed income is not always straight forward. It is vital that everything is explained and presented properly to the mortgage lender.
Improve your Chances
The biggest challenge for most self employed mortgage applicants is proving their income and explaining everything properly to the bank or mortgage lender.
As a sole trader you may or may not pay yourself a regular income and you may have had a bad year. A mortgage lender can look negatively on these things.
However if there are genuine reasons that make sense and income is secure going forward then mortgage lenders can be flexible.
It is really important that the mortgage lender takes into account any profits that remain in the business and looks at your overall financial position.
A Director of a Limited company will be considered as an employee and will have to provide the normal PAYE documents like payslips and bank statements.
However the bank will also want to see company accounts and tax returns to confirm the business can afford to pay you the salary that you need to get the mortgage.
Determining your overall income can sometimes be a challenge, particularly if you take a low salary. An expert mortgage broker will look deeper into your overall situation and find the correct level of income that a bank will take into account for mortgage approval.
Make sure you have an expert mortgage broker on your side.
These challenges can sometimes be overcome with some good advice. If you are currently taking a small income for tax purposes or if the business has recently made a loss but going forward is strong then we might be able to help.
At MortgageLine, we know the challenges that you might face and how to overcome them. At the very least we can talk things over with you and see where you stand. If you are not ready now then we will details what you need to do so that you can be ready in the future.
Your income level and personal circumstances, like your age, will determine the size of a mortgage you can get.
Different mortgage lenders will look at your income in different ways. Some will look at an average of your income over the last 2 or 3 years or what the business can afford to pay you.
For a new business it may be better to be assessed on the last 2 years income rather than the last 3 to maximize the income.
If you have a second income available to you from another source like rental or investment income etc., then it might be possible this can be factored in too.
For sole traders and partnerships the business gross net profits (before tax) are counted as income.
For Limited companies mortgage lenders can look at your salary and net profits combined.
If you are self employed and want the best mortgage options then talk with MortgageLine. We can help make your dreams of buying a home a reality. Whether you’re a first time buyer with a startup or a contractor with less than 2 years of accounts, we can help you to navigate the mortgage market quickly and easily. We will take the time to analyse your situation and find the best mortgage solution..
If you are looking to save time and money and need the help of an expert mortgage broker with experience working with self employed mortgage applications then contact us.
Our mortgage calculators can simplify your mortgage journey. They are designed specifically for self-employed individuals and provide accurate calculations based on your unique income.
By entering the loan amount, interest rate, and repayment period, you can see how much you will need to pay each month.
This calculator estimates the loan amount you may qualify for by considering application and mortgage type, employment status, and gross annual income.
Our advisers at MortgageLine are recognised for their deep understanding of the specific needs and challenges of self employed individuals applying for mortgages. We ensure all your financial details are presented to mortgage lenders, increasing approval chances. With over two decades of experience and a proven track record of success, we have become one of the best mortgage brokers for self employed individuals in Ireland.
Self employed applicants must provide various documents to prove their income, including company accounts, bank statements, salary payslips (if applicable), a Revenue Notice of Assessment, and an accountant’s letter confirming up-to-date tax affairs. These documents help our experts assess your financial stability, ensuring we can advocate effectively on your behalf with lenders.
To improve your chances of getting a mortgage, we suggest having a trading history of more than two years, maintaining healthy bank accounts and audited accounts, ensuring a healthy deposit, and keeping a clean credit record. We also recommend discussing your specific financial scenario with our adviser to understand the best strategies for your mortgage application.
MortgageLine simplifies the mortgage application process by providing a straightforward online application platform. Our experienced and reliable self employed mortgage broker in Ireland guides applicants through necessary documentation and anticipates potential issues, ensuring a smoother approval process.
One of the main challenges for self employed applicants is providing a stable income to lenders, which can often be more scrutinised than income from traditional employment. Our self employed mortgage advisor addresses these challenges by thoroughly understanding lender requirements and preparing applicants to meet these through detailed financial documentation and strategic financial planning. Contact Us Today!
Mortgage lenders and brokers classify you as self-employed if you fall into any of these categories:
Unlike PAYE (Pay As You Earn) employees, who have a contract with a fixed income, the income of self-employed individuals depends directly on the performance of their business or freelance work.
Embarking on the journey to homeownership in Ireland is an exciting milestone, but understanding the requirements to qualify for a first time home buyer mortgage is crucial to making this…
Stephen Hamilton Financial Services Ltd T/A MortgageLine is regulated by the Central Bank of Ireland.
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