Mortgage for Entrepreneurs: Getting Mortgage Ready in 2025

Many small business owners injected cash into the business during Covid, and now, with economic improvement, becoming a homeowner is back on the to-do list!

Before house-hunting though, you need mortgage approval. This means ‘getting your house in order’, in terms of finances and ability to pay.

A good mortgage applicant, for a lender, has good banking habits. These actions will help.

• Check your credit report at www.centralcreditregister.ie to ensure it is clean; no debt arrears for 12-24 months.
• Reduce overall debt, like credit cards. Consolidate debt to lower monthly repayments, to improve debt-to-income ratio.
• Avoid new financial commitments, like a car loan.
• Ensure bank statements don’t show regular overdrafts, overlimit fees, late or bounced payments, or direct debits to gambling websites or luxury subscriptions!
• Reduce outgoings and discretionary spend; retail therapy and holidays go on hold!

Next, ensure you can afford a home. Do a detailed budget of your income, spending, savings capacity, and repayment obligations.

Apart from the property cost, you need a minimum deposit of 10% of the purchase price, solicitors’ fees around €2.5k, 1% stamp duty (€4k on a €400k home); report costs of maybe €1k, and possibly white goods. You could be looking at around €10k extra.

Save for your property deposit. Lenders like to see mortgage holders contribute to the purchase, even if parents are gifting a deposit.

Show you have a full-time role and stable employment of at least 12 months, and job security, going forward. Self-employed business owners, or contractors, need to show consistent income for the past 2 years (certified accounts & tax returns).

Mortgage paperwork includes tax returns, payslips, bank statements, and proof of assets and any lending.

Lastly, research mortgages and lenders to suit your finances and life stage. Fixed-rate mortgages provide stability, while variable-rates offer flexibility. Compare rates, terms, assessment criteria and borrowing requirements.

Shop around; you don’t have to accept a first mortgage offer, and a broker can help. Remember, 1% interest difference, over the life of a mortgage, is a lot of money!

ENDS

Margaret Barrett is Managing Director at Mortgage Navigators, a brokerage specialising in lending for professionals, self-employed contractors and business owners. A Qualified Financial Advisor (QFA), Barrett previously worked with Bank of Ireland.

See https://www.mortgagenavigators.ie

For information contact:

SHARON BANNERTON, Managing Director, BANNERTON

M: + 353 87 6731100 E: Sharon@BANNERTON.ie