How to get a mortgage if you’re self employed

Why can it be difficult to get a self employed mortgage?

Issues tend to arise around:

• Showing lenders that you have a stable income
• Proving that you can afford the borrowing
• Supplying lenders with all the documentation to support your application

While this can make it harder to get the mortgage you want when you’re self employed, it’s still possible.

What counts as self employed?

Being classed as self employed for lending purposes usually includes being:

• Self employed e.g. freelance
• A sole trader
• A Director of a Company
• A Director of a Partnership

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.

What do you need to give lenders?

The information you’ll need to supply varies depending on the mortgage lender you choose, but it usually includes:

• Your financial accounts: These will need to be certified by an accountant and most lenders ask for at least two years of accounts.
• Your bank statements: This usually needs to cover at least the last six months, and include your current accounts, credit cards and business accounts.
• Your Revenue documents: This normally consists of your P.21 Notices of Assessment or Revenue Certificates, and your Tax Clearance Certificate for the last two years.
• Other business information: If you have copies of larger business contracts you may be able to submit these as evidence to support your application.

You’ll also need to supply the usual identification documents to prove your identity during your application.

What documents different lenders in Ireland ask for:

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	2 years, certified by accountant	6 months	3 years
Finance Ireland	3 years, certified by accountant	Not stated	Not stated
Haven	3 years, certified by accountant	6 months	3 years
ICS Mortgages	2 years, certified by accountant	6 months	Not stated
KBC	2 years, certified by accountant	6 months & 3 months credit cards	Not stated
Permanent TSB	2 years, certified by accountant	6 months	Not stated
Ulster Bank	2 years, certified by accountant	6 months	Not stated

Most lenders will also ask for confirmation of your tax position from your accountant.

How to make it easier to get a self employed mortgage

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:

• Preparing your documentation: Speak to your bank to request bank statements and check how long they’ll take so you’re not left waiting at the last minute.
• Getting the right accountant: An experienced accountant can make a big difference. They’ll guide you through the application and ensure you’ve got all the right documentation. Most lenders also require an accountant to certify your accounts and confirm you’re tax compliant.
• Reducing your debts: Paying off your loans and credit cards can improve your affordability in the eyes of potential lenders. This can be more important if you’re self employed as proving your income is harder.
• Investigating mortgage protection insurance early: This is arguably more important if you’re self-employed. You’ll also need to consider what other insurance you need with your mortgage and how much stamp duty you’ll need to pay as well.
• Saving a larger deposit: Being able to put down a bigger mortgage deposit makes you less of a risk and also means you’ll need to borrow less.

For more tips, read our guide: How to prepare for a mortgage application.

What’s next?

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.

Self employed mortgage FAQs