Mortgage Guidelines for the 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 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.