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        Remortgaging When You’re Self-Employed

        Are you self-employed and looking to remortgage? Read our in-depth guide for everything you need to know.

        What type of company do you have?

        No impact on your credit score

        If you’re self-employed, remortgaging can provide a very welcome opportunity to save some money on your monthly mortgage repayments, at a time when trading conditions have been pretty tough for so many.

        This guide offers all the information you’ll need on how to do this, why it might be a good idea, and what you need to be aware of before submitting an application.

        Can you remortgage if you’re self-employed?

        Yes, of course you can. Working for yourself doesn’t prevent you from remortgaging any more than it stops you applying for a mortgage in the first place.

        As long as there’s plenty of equity in your property and you’ve been a responsible borrower with a good credit score, you should be in a strong position to qualify for the best deals available.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from a mortgage expert.

        How to remortgage if you’re self-employed

        To give your remortgage application the best chance of success and ensure you find the right deal that fits with what you’re looking for, there’s a few steps we recommend you take…

        Step 1. Look through your existing mortgage paperwork

        The first thing you need to do is look through the documents for your current mortgage. Most importantly find out when your current deal expires, what interest rate you’re being charged and how much the monthly payments are.

        Once you know when your existing deal finishes, give yourself anywhere between 2-3 months before this date so you have enough time to look at all the alternative deals available and prepare the proof of income you’ll need for your remortgage application.

        Step 2. Speak to an experienced mortgage broker

        A broker who’s experienced in dealing with remortgages will be able to find lenders who are currently offering the best deals to suit your requirements and look more favourably on applications from people who are self-employed.

        They’ll also be able to help you decipher your existing paperwork so you can compare other deals with new lenders against what you currently have and prepare all the necessary evidence of earnings (see table below), should you decide to move your mortgage elsewhere.

        We know the mortgage brokers we work with have a lot of experience in this area.

        If you get in touch we can arrange for somebody to call you straight away.

        Step 3. Find and compare the best deals

        Each lender will have different offers available and they don’t all use the same eligibility criteria.

        Your mortgage broker will know exactly where to look, who’s offering what, how this compares with your existing deal and which lenders will be more likely to accept your application.

        This will save you a huge amount of time and, potentially, some money too as you can make sure you have a new mortgage deal all arranged for when your current deal ends.

        Step 4. Check your credit score

        Keeping an eye on your credit score is sound financial practice and something you can do on a habitual basis, not just when you’re thinking of applying to remortgage.

        There’s a few websites that will let you do this without paying a fee (Clearscore and Experian, for example).

        It’s important to have a good, solid credit score before submitting your application.

        Step 5. Submit your application

        Once you’ve done all your research, looked at all the different offers available and made your choice, you’re ready to apply.

        The good news is your mortgage broker will be with you every step of the way and can help manage your application from start to finish.

        Our Broker-Matching Service Guaranteed!

        We want you to have complete confidence in our service, and get the best chance of securing your mortgage. We guarantee to get your mortgage approved where others can’t – or we’ll give you £100*

        Learn More
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        Why should you consider refinancing?

        A remortgage is where you switch your current mortgage to another.

        You can either do this with your existing lender or if a more attractive deal is available with a different lender you can move to them. In a nutshell, it’s basically good financial management.

        If you want to find out more about why remortgaging might be worth considering, take a look at our full guide to remortgaging here.

        When is the best time to remortgage?

        The best time is definitely when your current mortgage deal has expired. At this point, early redemption charges (ERCs) can no longer be applied so you’re free to switch with no fear of incurring large fees as a result.

        ERCs usually range from between 1%-5% of your mortgage loan, so they can make quite a big impact on your decision to go ahead.

        In some cases, it could still work out cheaper in the long run to change during the term of an existing deal, depending on what terms are available.

        Also, if you’ve been able to pay off quite large amounts of your existing mortgage, this will leave you with a healthy amount of equity in your property.

        This means when you’re looking to remortgage you’ll have a much lower loan-to-value (LTV), which should attract more lenders offering the most competitive rates.

        But don’t worry, one of our expert brokers can help you to look at the figures to see if it is in your best interests to stay with your current provider or move to another.

        Work out what your new deal could look like

        You can use our calculator below to get a rough idea of what your new mortgage payments might look like after you’ve refinanced.

        calculator icon

        Remortgage Calculator

        Our remortgage calculator can tell you what your new loan-to-value (LTV) ratio and repayments will be after you've remortgaged, with or without releasing equity from your property.


        Estimate if exact value is unknown
        £
        Estimate if exact value is unknown
        £
        Amount must be less than property value
        Leave blank if no equity is being released
        £
        What will the new term length be after you've refinanced?
        years
        Keep in mind that this could change if your LTV rises
        %

        New LTV:

        After you have remortgaged, your new LTV ratio will be and your new mortgage payments will be as indicated below…

        New Monthly Repayments:

        Get started with an expert broker to find out how much they can help you save on your remortgage.

        What if you became self-employed after taking out your mortgage?

        When you apply for a remortgage, a lender still has to conduct an affordability assessment before they can approve your application.

        If you were a salaried employee when you originally applied and you’ve since become self-employed – don’t panic! The only difference in the application process this time around is the proof of income you’ll be asked for.

        If you’ve only recently started working for yourself, the table below provides a neat summary of how your earnings will be assessed and what evidence you’ll need to provide, depending on your self-employment status.

        Self employment status Affordability Assessment based on: Proof of Income required:(most lenders ask for minimum 2-3 years) Business Bank Statements: Include Future Income Projections?*
        Sole Trader Net profits
        • Certified accounts
        • SA302 statements from HMRC

        OR

        • Tax year overview
        Yes
        (typically 3-6 months)
        Yes
        (if less than two years full certified accounts available)
        Partnership Each partner’s percentage share of the net profits
        • Certified accounts
        • SA302 statements from HMRC

        OR

        • Tax year overview
        Yes
        (typically 3-6 months)
        Yes
        (if less than two years full certified accounts available)
        Limited Company Director Salary plus dividend income
        OR
        Salary and retained profits
        • Certified business accounts
        • SA302 statements from HMRC

        OR

        • Tax year overview
        • Accountants reference*
        Yes
        (typically 3-6 months)
        Yes
        (if less than two years full certified accounts available)

        * = Future income projections may or may not be needed, but are a good idea to include particularly if you have less than two years full accounts available. 

        What if you have no proof of income?

        Then it will be difficult to remortgage but not impossible. In previous years, if you were self-employed you could use self-certification mortgages, which allowed you to confirm your own ability to pay but these types of loans are no longer available since major issues arose following the credit crunch.

        There are still specialist lenders available who have experience in this area and can help in such circumstances.

        Get matched with a remortgaging expert

        We understand it isn’t just about finding a broker, it’s about finding the right broker with the experience and knowledge to help you get the best mortgage deal that suits your specific requirements.

        Remortgaging if you’re self-employed can be quite complex. The brokers we work with will help make what can be a tricky process much more straightforward.

        Call 0808 189 0463 or make an enquiry and we can arrange a free, no obligation call with a mortgage broker who has experience in assisting self-employed people remortgage today.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from a mortgage expert.

        FAQs

        Yes, it’s possible if sufficient equity exists. There are specialist lenders and a few mainstream lenders who would consider applications on this basis.

        The best time is definitely when your current mortgage deal has expired. At this point, early redemption charges (ERCs) can no longer be applied so you’re free to switch with no fear of incurring large fees as a result.

        Ask a quick question

        We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Self Employed Mortgages. Ask us a question and we'll get the best expert to help.

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        Pete Mugleston

        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us as well as any of our own are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.