If you run your own business or work for yourself, proving your income and getting a mortgage can sometimes be tricky. Here’s what you need to know about getting a mortgage when you’re self employed.
Issues tend to arise around:
While this can make it harder to get the mortgage you want when you’re self employed, it’s still possible.
Being classed as self employed for lending purposes usually includes being:
These are all roles where your income is more directly related to the performance of your business, unlike employees who have a contract that states an income.
The information you’ll need to supply varies depending on the mortgage lender you choose, but it usually includes:
You’ll also need to supply the usual identification documents to prove your identity during your application.
|Lender||Business accounts||Bank statements||Revenue forms|
|AIB||3 years, audited by accountant||6 months||3 years|
|Bank of Ireland||2 years, certified by accountant||Not stated||Not stated|
|EBS||3 years, certified by accountant||6 months||3 years|
|Finance Ireland||2 years, certified by accountant||3 months||2 years|
|Haven||3 years, certified by accountant||6 months||3 years|
|ICS Mortgages||2 years, certified by accountant||6 months||2 years|
|KBC||2 years, certified by accountant||6 months & 2 months credit cards||2 years|
|Permanent TSB||2 years, certified by accountant||6 months||Not stated|
|Ulster Bank||2 years, certified by accountant||6 months||2 years|
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Most lenders will also ask for confirmation of your tax position from your accountant.
The best way to increase your chances of being approved for a mortgage is to be prepared, especially if you’re self employed.
Some of the steps you should take include:
For more tips, read our guide: How to prepare for a mortgage application.
Once you’ve done these steps you could then apply for a mortgage approval in principle.
This shows you’ve passed lenders initial checks and gives you a better idea of how much you can borrow when looking for a property.
Find the best first time buyer and home mover mortgage deals in Ireland using our comparison.
Yes, the same rules apply if you are borrowing with another person. Whoever is self employed will still need to be able to provide the documents the lender requests to prove their income.
The income of the person who is employed will be included in the affordability calculations as normal.
It’s likely to be difficult because most lenders ask for a minimum of 2 years of accounts.
This depends on the lender. Most require a qualified accountant to certify your audited accounts.
Some lenders may allow you to self certify your accounts, if you can supply a revenue balancing statement. If that’s the case, it’s best to check what else they need to support your application before you apply.
You’ll need to be able to show a consistent income to any potential mortgage lender. Exactly how long you’ll need to have been self employed will vary, but the absolute minimum is usually one year. Many lenders ask for at least three years of audited accounts.
You can find out more about how much you could borrow by reading our guide: How much can I borrow?
Most of the mortgage lenders in Ireland will offer mortgages to self employed borrowers, however their lending requirements will vary so always carefully check before you proceed.
You can find a full list of the latest mortgage deals here.