Margaret Barrett, Managing Director at Mortgage Navigators, shares insights that debunk the myth: securing a mortgage as a self-employed contractor in Ireland is not as challenging as it’s often perceived.
Self-employed contractors represent a significant and growing segment of Ireland’s labour market. According to the CSO Labour Force Survey (November 2024), there are 344,800 self-employed individuals, accounting for 14.3% of the workforce. Many organisations prefer contractors for their specialised skills, and lenders have adapted to cater to this evolving workforce.
While it was once difficult for contractors to secure mortgages due to their unconventional income streams, this is no longer the case. In fact, professional contractors often qualify for higher borrowing limits due to their specialist expertise and potentially higher incomes.
Understanding contractor-specific criteria can be daunting for many lenders and advisors. Working with a specialist broker like Mortgage Navigators simplifies the process. As a division of Contracting PLUS, Mortgage Navigators specialises in guiding contractors through the mortgage landscape, ensuring their unique circumstances are well-represented.
Gone are the days of rigid 2-3 year requirements. Many lenders assess overall income over the past 2-3 years, regardless of employment type. Having a 12-month contract or proof of a renewed 6-month contract significantly boosts approval chances.
Prepare the following:
Your credit history plays a vital role. Check your record with the Central Credit Register and address any issues before applying.
There’s no penalty for both applicants being self-employed. However, both must provide business accounts and financial documentation.
Pension contributions are considered discretionary and don’t impact borrowing capacity. However, these contributions are not assessed as income for loan-to-income ratios.
Most banks accept applications from new employees but may require the probation period to be completed before drawdown.
At Mortgage Navigators, we understand the unique needs of contractors. Our team, led by Margaret Barrett, is committed to simplifying the mortgage process and ensuring contractors secure the best possible deal. Margaret’s extensive experience in financial advisory roles, combined with our affiliation with Contracting PLUS, makes us the go-to broker for self-employed professionals.
Ready to take the next step? Visit Mortgage Navigators or contact us today to discuss your mortgage options.