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Mortgages for Professional Contractors

Getting mortgage approval as a Professional Contractor is about supplying the right documentation to support your application. Find out what you need to prepare.

Getting a Mortgage

Getting a mortgage as a Professional Contractor in Ireland is not much 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. The key to successful approval is to show the bank that both your contract and your income is 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 application with materials and documentation that gives comfort to the lender that you are a good qualified risk.

 

 

Prove you have a sustainable income stream

Obviously the bank do not want to take risks with their money, however 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.

 

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;

How to get a mortgage

Mortgage for Contractors

We are here to help!

Use an Accountant that understands Contracting

Your bank will put a lot of trust in your accountant. They’ll need to prepare accounts, apply for Revenue confirmations, and speak to your bank about how Umbrella Companies work. If you have your own company then you might have retained earnings because you haven’t taken all the profits out through salary. At Contracting PLUS we explain this concept to the banks as many of their mortgage advisors can struggle to understand this concept. We have worked with over 20,000 Contractors and have prepared documentation for 100’s of mortgages over the years.

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 the 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. A mortgage broker who understands how Independent Professional Contractors operate will be able to work with the banks to explain the industry and maximise your borrowings. Contracting PLUS have identified a number of Mortgage Brokers who operate nationwide, who understand Contracting and have a positive track record in getting mortgages for contractors. Your Dedicated Account Manager will be able to provide you with these names.

Stay in touch with your Recruitment Consultant

Scheduling your work is important for Independent Professional Contractors. If you’re not working, you’re not getting paid. So work with a Recruitment Consultant you trust and have a good relationship with. Let them know when your contract is coming to an end (the good ones will know and will be in touch with you: but don’t leave it to chance in case they’ve been promoted to a new area or have moved jobs). Remember, you’re self-employed now, so it’s your responsibility to figure out where your next contract is coming from.

Contracting PLUS –  Making Contracting Simple

The benefits of choosing Contracting PLUS

Our compliant contractors typically achieve the best retention rates; they take home more money.

Our App and online portal remove all the admin and hassle from you.

Standard company insurances are included (at no extra cost) in most cases.

You’ll have a Dedicated Account Manager to answer all your questions.

You’ll get ongoing pro-active tax saving tips and suggestions.

Talk to us

Talk to our team to figure out the best solution for you

1800 54 54 22 Free Phone