If you’re self-employed in Ireland and dreaming of buying a home, here’s the good news: yes, lenders will give you a mortgage. You’re not locked out just because you don’t get a payslip every Friday. What it does mean is that the process comes with a few extra steps, particularly around paperwork and proof of income. With the right preparation, meeting mortgage loan requirements for self-employed buyers is entirely possible.
The key to success? Know what lenders want, have your paperwork in order and ready, and don’t try to go it alone, get professional advice. Our team at MortgageLine has helped hundreds of self-employed buyers just like you get mortgage-ready and over the finish line. You can start exploring your options for self-employed mortgages in Ireland right now.
Who Counts as Self-Employed for Mortgages?
When it comes to mortgages, “self-employed” covers a few different types of income earners. This includes:
- Sole traders
- Directors of Limited Companies with a shareholding of 20% plus
- Contractors working on short-term or project-based work
Each type of applicant is assessed slightly differently when it comes to proving income, which is why your classification really matters. For example, a company director might be able to use retained profits to boost affordability, while a sole trader can’t. Contractors often rely on contract history or daily rates instead of traditional accounts.
Understanding where you fit is key, because lenders will expect different self-employed documents for mortgage approval depending on your situation.
How Many Years of Accounts Are Needed
Most Irish mortgage lenders will ask for 2 to 3 years of accounts and tax returns. This gives them confidence that your income is stable and sustainable over time.
That said, there are exceptions:
- If you’re recently self-employed but have years of experience in the same profession (e.g., a contractor who just left PAYE employment), some lenders may accept just 1 year of accounts.
- If you’re a first-time buyer, there can be a bit more flexibility, especially with strong savings and a clean credit history. See our first-time buyer mortgage information for more on this.
Key Self-Employed Mortgage Documents
When applying for a mortgage as a self-employed borrower, lenders won’t just want to know what you earn. They need clear proof in the form of documentation. Your self-employed mortgage documents need to be accurate, up-to-date, and consistent.
Here are the most common self-employed mortgage documents needed:
- 2–3 years of certified accounts (for Limited Companies)
- Revenue Form 11 (filed tax returns)
- Revenue Chapter 4 Self-Assessments
- 6 months of business and personal bank statements
- A letter from your accountant confirming your tax affairs are up to date
If you’re preparing for a self-employed mortgage application, keeping your mortgage documents organised is essential. For a full breakdown, check our mortgage application documents checklist.
Business Structure and Types of Income
The way lenders assess your income depends on how your business is set up. Each structure comes with slightly different self-employed mortgage requirements:
- Sole traders and partnerships: Income is usually based on net profit after expenses, averaged over 2–3 years.
- Company directors: Lenders will typically consider your salary plus other drawings. Some will also include retained profits and other add backs from the business accounts. If it’s clear your company could afford to pay you more then you should be able to borrow more.
- Contractors and freelancers: You might get away with less than 2 years accounts if you have a contract in place and or you can show experience in your field. Mortgage requirements for freelancers can be more flexible if you have a strong contract history
Be aware: “add-backs” such as pension contributions, depreciation, or non-essential expenses can sometimes be added to your income if justified properly. This is where having a savvy mortgage broker makes a real difference.
Affordability Factors: Deposit, Debt, Credit
Meeting the self-employed mortgage application requirements isn’t just about income. Lenders also review your wider financial profile to assess overall stability. Here’s what they’ll be paying close attention to:
- Deposit size: The more you can put down, the better. Minimum is usually 10% but if you have a higher deposit, you look stronger to lenders.
- Credit history: Keep it squeaky clean. Missed payments or loans in arrears are big red flags.
- Debt-to-income ratio: Lenders look at your monthly obligations (like loans or car payments) relative to your income.
Because self-employed income often fluctuates, lenders will take a conservative view on affordability. A solid financial profile helps balance the perceived risk and improves your mortgage approval chances.
Extra Evidence That Strengthens a Self-employed Mortgage Application
Beyond the standard self-employed mortgage documents needed, there are additional pieces of evidence that can make your application stronger. These aren’t always part of the formal self-employed mortgage application requirements, but they can help convince lenders of your financial stability:
- Future contracts or letters of engagement
- Projected earnings for the current year
- An accountant’s letter explaining your income trends
- Proof of regular work from repeat long-term clients
- Confirmation of retained profits (for company directors)
These extras help paint a fuller picture of your financial reliability and reassure lenders that your income is steady and reliable and won’t suddenly vanish after you get the keys.
Tips to Improve Your Mortgage Chances
Whether you’re six months away or six weeks away from applying, preparation is key. Meeting self-employed mortgage requirements goes beyond documents, it’s also about how you manage your finances day to day. Here are some smart ways to prepare:
- Keep personal and business bank accounts separate
- Stay tax compliant – file and pay on time
- Build a savings cushion – even beyond your deposit
- Avoid overdrafts and bounced direct debits
- Maintain a strong credit history (no missed or late repayments)
- Work with a broker early – It pays to get ready in advance and correct anything a bank will see as a red flag.
You’ll find more in-depth advice in our guide to tips to qualify for mortgage.
MortgageLine: Helping the Self-Employed Secure Their Home
At MortgageLine, we’ve helped sole traders, freelancers, contractors, and company directors across Ireland turn complex paperwork into successful mortgage applications. We know which lenders are open to self-employed borrowers and how to present your income in the best possible light.
And if you’re already a homeowner thinking of a better deal, we can also help with switching your mortgage in Ireland.
Get in touch today for a free consultation. Your next chapter could be closer than you think.
FAQs
What if I’ve only been self-employed for one year?
It might still be possible to get a mortgage with only one year’s accounts. Some lenders may consider you if, for example, you’re a contractor who recently went self-employed but have extensive experience in your field.
Can I use retained profits as income for a mortgage?
Yes. For company directors, some lenders will include retained profits if the company has the financial capacity to increase your salary and other income. It often depends on how the accounts are structured.
Do seasonal earnings count toward mortgage affordability?
They can but only if they appear consistently over a few years and you can prove they’re a regular part of your income. Lenders prefer stable income patterns, not surprises.
How do lenders treat joint applications with one applicant is self-employed?
Joint applications are welcome. The self-employed income will be assessed separately under self-employed mortgage application requirements and then combined with the PAYE partner’s income to calculate the overall affordability.
