Mortgages for Professional Contractors

The Best Mortgage Broker for the Self-Employed

Getting a mortgage as a Professional Contractor in Ireland should not be any different than if you were an employee. In fact, you may be in a position to borrow more as a Professional Contractor because your income is likely to be greater than that of a permanent employee.

To make the mortgage process as simple as possible we recommend working with a mortgage broker that understands how contracting works. Our in-house mortgage broker service is free to Contracting PLUS clients. Our team at ‘Mortgage Navigators’ will work with you and guide you through the process, making your journey to owning your new home easy from start to finish.

Your guide to the mortgage process 

Can You Get a Mortgage When Self-Employed?

Obviously, banks do not want to take risks with their money, so when you’re self-employed and applying for a mortgage you need to show that you have a sustainable income stream. Contrary to misguided belief, banks are positively disposed to giving mortgages to Professional Contractors; particularly these days as more and more companies are engaging professional workers on a contract basis.

The key to successful approval is to show the bank that both your contract and your income are sustainable.

Mortgage approval is based on your ability to provide back-up to the lender which proves that you are in a position to repay any loan according to the terms offered.

You’ll need to support your mortgage application with materials and documentation that give comfort to the lender that you are a good qualified risk.

How to show Sustainability of your income

Typically, you will be asked to provide certain documents (all of which Contracting PLUS will prepare for you). When you’re ready to apply for your mortgage just let your Dedicated Account Manager know and they’ll have a pack prepared for you which will include the following documents;

• 2 years financial accounts (though some banks are settling for less these days)
• 6 months business bank statements (including business credit cards)
• 2 years Revenue Notices of Assessment (Tax Returns)
• Tax Clearance confirmation

Once your documentation is up to date and you have sufficient income, you are no worse off than an employee applying for a mortgage.

Maximise your chances of getting Mortgage approval

1. Keep your accounts up to date: nothing older than 18 months.
2. Be organised. You’ll need copies of bank statements, contracts, accounts, payslips, tax returns, passport, proof of address, etc.
3. Get a free cloud storage account and start saving and organising the documents you’ll need: it’ll save you a lot of time come application time.
4. Don’t give up. If you don’t have the right documentation in place, then just bide your time for 6 or 12 months. Buying a house is a slow process. By the time you find the right house you’ll probably have all the documentation you need.
5. Check out your credit rating with the Irish Credit Bureau (www.icb.ie). If you spot a mistake you can have it amended before applying for your mortgage.
6. Reduce your personal debt and borrowings where possible. The less debt you have, the more you can borrow.
7. Try and have some money saved. You’ll need a deposit, but if you can show you have additional savings to cover your salary in quieter months this will help. Ideally build up this fund through regular savings.
8. Show that you have an adequate cash deposit available from your own savings. Banks are fine with people getting a gift or availing of the Help to Buy grant but they still like to see that people have gathered some level of a deposit together themselves to put to the deal.

Showcase your Career

Lending institutions will require a certain level of comfort that you are in a secure contract position and that you have the expertise to get future contracts when your current one is finished.

How to show Sustainability of your employment

• You need to have been contracting for a minimum of 12 months and have previous contracts to back this up;
• You should have more than 6 months remaining on your current contract, or if less than 6 months then a new contract offer in place for when the current one ends;
• Show that you are working in a skilled/professional role in a secure sector with long term prospects of further contracts being offered;
• Prepare your CV showing your experience and qualifications;

Get your finances in order

This process applies to both employees and Independent Professional Contractors. You’ll be asked for 6 months bank statements so keep them tidy. Remove direct debits to any gambling websites, show sensible spending habits, avoid randomly large withdrawals, clear off your credit card and pay down personal loans. Applying for a mortgage is no different to applying for a job. You want to put your best foot forward at ‘interview’ stage and prove you’re a trustworthy individual with sensible spending/saving habits that’s not likely to give the bank any hassle.

Find a mortgage broker who is used to dealing with Contractors

Contracting as a career doesn’t fall directly inside the ‘I am an employee’ box or the ‘I run my own business’ box. When you don’t fit easily into the banks’ criteria, the computer might say no. Our in-house mortgage brokers understand how Independent Professional Contractors operate and are able to work with the banks to explain the industry and maximise your borrowings.