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Applying For A Self-Employed Mortgage In Ireland
The process of obtaining a mortgage in Ireland can be a stressful one – and even more so for those applying for a self-employed mortgage.
Because a self-employed individual is faced with unique challenges when planning their ascent up the property ladder, they must arm themselves with a thorough understanding of the obstacles they’ll encounter and – most importantly – how to overcome them.
So whether you’re a freelancer, sole trader or company director on the hunt for your dream home, this article aims to demystify the mortgage process, offering invaluable insights and guidance tailored to the self-employed buyer.
Key considerations for a self-employed mortgage
For self-employed professionals, the key to a successful mortgage application lies in demonstrating income stability.
It’s no secret that lenders scrutinise financial histories with a fine-tooth comb. This is to ensure a prospective buyer will have the ability to maintain consistent earnings and uninterrupted mortgage repayments. The applicant will be required to hand over certain essential documentation to prove this, including:
- Two to three years of certified and audited accounts
- Tax Clearance Certificates and Revenue Notices of Assessment
- Six to twelve months of personal and business bank statements, including the statements for any business credit card accounts
While this extensive list of documentation may seem over the top, it’s an unfortunate fact that lenders perceive self-employed individuals as higher-risk applicants due to the variable nature of their income. Because of this, this cohort of applicants needs to present a comprehensive financial portrait and one that showcases reliability and long-term stability.
Navigating the mortgage application process as a self-employed buyer
For anyone embarking on the mortgage application process, a very high degree of organisation and preparation is required. For the self-employed, this level of diligence needs to be taken up a notch further, by ensuring all financial records are comprehensive, up-to-date and provide an accurate reflection of financial health.
While compiling this well-organised dossier of financial documents is the best starting point, other measures should also be taken to increase the chances of mortgage success.
Tips for a strong self-employed mortgage application
- Maintain impeccable financial records by regularly filing detailed financial documentation
- Highlight income stability through a consistent income trajectory, which can significantly strengthen an application
- Ensure a robust and reliable credit history well in advance of the application process
- Consider paying a larger deposit to reflect a greater ability to save
- Secure an income protection insurance policy which can cover up to 75% of income in the event of ill health or injury, to showcase a greater level of financial protection and to ensure that mortgage repayments will continuously be honoured
Tailoring mortgage solutions to fit self-employed needs
Once the documentation has been pristinely gathered and presented, a lot of the hard work is now done and dusted. The next step is choosing the right mortgage option to suit personal financial circumstances, both now and in the future.
This is a vital step in fact, as exploring flexible mortgage options and terms becomes crucial for self-employed applicants. Why? Because an innovative mortgage solution will provide the flexibility needed to accommodate the peaks and troughs of self-employed income.
Importance of professional mortgage advice for custom solutions
The value of expert guidance should not be underestimated in the context of self-employed mortgages. A professional mortgage advisor can take a significant amount of stress from the situation, helping applicants with everything from the collation of documents to identifying the most suitable mortgage products and strategies to enhance the success of an application.
Furthermore, an experienced advisor can offer bespoke advice, tailored to the unique circumstances of a self-employed individual, ensuring they present the strongest possible application to lenders.
Acquire the best self-employed mortgage deal with Symmetry Financial Management
At Symmetry Financial Management, we specialise in providing tailored mortgage advice to first-time buyers, mortgage switchers, property investors, and of course, self-employed applicants. Our team of seasoned advisors brings a wealth of experience, offering personalised, impartial advice to secure the best mortgage deal for your circumstances.
Embrace the opportunity to transform your homeownership dreams into a reality. Contact us today to embark on your journey towards securing a self-employed mortgage with confidence and clarity.
If you’d like a free, no-obligation consultation for your mortgage, pension or financial needs, get in touch here, call us on 01 6831673 or email us directly on info@symmetryfinancial.ie.
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