Self employed remortgage

Remortgaging for the Self-Employed: A Guide for Homeowners

Congratulations on taking charge of your finances! Remortgaging your property can be a smart way to save money, access additional funds, or secure a better interest rate. However, for self-employed individuals, the process can seem a little more daunting compared to employed applicants. This guide is here to equip you with the knowledge and steps needed to navigate a remortgage as a self-employed homeowner.

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What is Remortgaging?

Simply put, remortgaging involves taking out a new mortgage on your existing property. You replace your current mortgage deal with a new one, potentially from a different lender, offering more favourable terms. Remortgaging can be beneficial for several reasons:

• Lower interest rate: This can significantly reduce your monthly repayments, freeing up extra cash.
• Shorter mortgage term: This allows you to own your home outright sooner.
• Access to additional funds: Some remortgages allow you to “borrow up” on the increased value of your property, providing a lump sum for renovations, investments, or other needs.
• Switch to a different type of mortgage: You can change from a fixed-rate to a variable-rate mortgage (or vice versa) depending on your current financial goals and risk tolerance.

Can You Remortgage if You’re Self-Employed?

Absolutely! While it may require a bit more preparation compared to employed borrowers, remortgaging is definitely possible for the self-employed in the UK. Lenders understand that self-employment doesn’t equate to financial instability. Many lenders offer competitive remortgage deals specifically tailored to self-employed individuals.

How to Remortgage if You’re Self-Employed: Your Step-by-Step Guide

Here’s a breakdown of the remortgage process for self-employed individuals:

1. Get Your Finances in Order:

Review your current mortgage: Understand your remaining balance, interest rate, and any potential early repayment fees associated with switching lenders.

Gather your financial documents: Lenders typically require at least 2-3 years of self-assessment tax returns (SA100 forms), along with your most recent SA302 tax calculation. Bank statements demonstrating consistent income and business expenses are also helpful.

Improve your credit score: A healthy credit score increases your chances of securing a favourable remortgage deal. Check your credit report for any errors and take steps to improve your score if necessary, such as paying bills on time and reducing credit card debt.

2. Consider Your Needs and Options:

Determine your goals: What do you hope to achieve with remortgaging? Are you looking for a lower interest rate, access to additional funds, or a shorter mortgage term?

Research different mortgage products: Compare interest rates, fees, and terms offered by various lenders in the market. Consider fixed-rate, variable-rate, and tracker mortgages, each with its own advantages and drawbacks.

Factor in additional costs: Be aware of potential fees associated with remortgaging, such as valuation fees, legal fees, and arrangement fees.

3. Talk to a Mortgage Broker (Highly Recommended):

A mortgage broker can be an invaluable resource for self-employed individuals. They can:

Source suitable remortgage deals based on your specific circumstances and financial profile.

Negotiate with lenders on your behalf to secure the most suitable interest rate and terms.

Guide you through the application process and ensure all necessary paperwork is submitted correctly.

Top 3 Tips for Self-Employed Remortgaging

Is it Difficult to Get a Remortgage if Self-Employed?

The difficulty of obtaining a remortgage as a self-employed individual depends on several factors:

• Trading history: Lenders prefer a history of consistent income. Ideally, you should be self-employed for at least two years, with demonstrably stable earnings.
• Profitability: Lenders assess your ability to repay the mortgage based on your net profit after business expenses.
• Credit score: A good credit score significantly improves your chances of approval.

 
 
 
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Paul is so amazing and professional. We are first time buyers and Paul helped us through the process so efficiently and patiently.
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As a first-time buyer and a non-British citizen, it is always difficult to know which process you need to follow to be able to purchase a property and see if you are capable of getting a mortgage.

Paul has been very efficient and helpful since the first day we had our initial meeting. He provides all the information we need and is very quick to reply to our queries and doubts by e-mail or phone calls. He makes all these stressful moments very easygoing, being very patient, kind, and very helpful throughout the entire process. I highly recommend the services and advice he provides!!
  
 
  
 
 
 
  
 
 
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2024-06-12
 
 
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I am a 27-year-old first-time buyer based in London. A few months ago, my partner and I were looking for property to rent in London. As we all know, renting a flat in London is absolutely horrendous and expensive, and landlords won’t guarantee if you stay there for the long term. So, during this process, we came into contact with Your Property Financial Ltd. When we booked a consultation meeting, we spoke with Paul. Within 30 minutes of chatting with him, we realised we could actually afford to buy our own place. As we have always been scared to actually approach estate agents regarding buying opportunities, they normally turn around and say, "Oh, your income is low", ect.  Paul has been a hero for giving advice and explaining what we need to know regarding how we can purchase our first home. Paul also introduced us to a great team of solicitors who have been absolutely great throughout our purchasing process.  My experience with Your Property Financial Ltd has been absolutely positive, and we would certainly recommend them and Paul to all our family and friends who are still renting in London. Lastly, we are glad at how prompt everything went as Paul & his team took care of everything.
  
 
  
 
 
 
  
 
 
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Paul has been extremely helpful with our ongoing house purchase. He is very knowledgable and has been able to give us a variety of options and contacts for other legal and financial advice . We are very happy and grateful for your help !
  
 
  
 
 
 
  
 
 
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2024-05-01
 
 
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Paul is incredibly knowledgeable. He help me through out a very long and hard process, I was selling and buying and he kept reassuring me, on top of everything, contacting the solicitor or agent to confirm information if or when needed. If you need a mortgage advisor he is the best.
  
 
  
 
 
 
  
 
 
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2024-04-10
 
 
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2023-12-25
 
 
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Paul is a fantastic advisor and guided my husband and myself through the entire process of buying our first home, he made the entire process feel easy and we were well informed along with great communication and fast action. We completed within 3 months of contacting Paul.
  
 
  
 
 
 
  
 
 
 Johnathan Lowery 
 
2023-11-16
 
 
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Working with Paul has been a hugely positive experience. Paul took the time to understand our needs and financial situation, ultimately securing us a mortgage deal that we would not have been able to obtain on our own. His guidance and patience over an extended time was invaluable in guiding us through a volatile period in the property market. I highly recommend working with Paul at Your Property Financial.
  
 
  
 
 
 
  
 
 
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2023-10-02
 
 
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It has been great working with Paul. He helped us to redeem our help to buy equity loan which didn't seem possible to me when I first contacted him. It took much longer than expected due to many obstacles but Paul explained every step of the process very clearly and he regularly communicated with me to ensure the remortgage went through as efficiently as possible. I would definitely recommend working with Your Property Financial.
  
 
  
 
 
 
 
  
 
 

Mortgage Brokers are a Huge Advantage for Self-Employed Remortgages 

For self-employed individuals, navigating a remortgage can feel more complex compared to employed applicants. Thankfully, mortgage brokers can be a game-changer in simplifying the process and securing the most suitable deal. Here’s why:

Understanding Your Needs:

• Matching You with the Right Lender: Brokers have access to a wide range of lenders, including those specialising in mortgages for the self-employed. They assess your financial situation and goals to find lenders with criteria that most suit you.
• Decoding the Options: The variety of remortgage products can be overwhelming. Brokers explain the pros and cons of fixed-rate, variable-rate, and tracker mortgages, helping you choose the one that aligns with your financial plans.

Smoothing the Application Process:

• Gathering Documentation: Brokers know exactly what documents lenders need from self-employed applicants. They guide you on gathering tax returns, bank statements, and other relevant paperwork to ensure a smooth application.
• Presentation Matters: Brokers present your financial picture in the most favourable light for lenders. They highlight consistent income trends, business growth potential, and any other factors that strengthen your application.

Negotiating Power:

• Competitive Rates: Brokers have strong relationships with lenders and can negotiate for lower interest rates and potentially waive some fees, saving you significant money over the mortgage term.
• Streamlined Communication: Brokers handle all communication with lenders on your behalf, freeing you from paperwork and phone calls. They track the progress of your application and keep you updated.

Additional Benefits:

• Market Expertise: Brokers stay updated on current mortgage rates and market trends, ensuring you get the most suitable deal available.
• Time-Saving: Brokers streamline the entire process, saving you valuable time and effort compared to researching and contacting lenders directly.
• Peace of Mind: With an experienced broker on your side, you can feel confident that your application is in good hands and all steps are followed correctly.

Making Your Self-Employed Remortgage Journey Smooth

• Remortgage video: https://www.youtube.com/watch?v=UUQOfSF3OzQ
• Why use a mortgage broker video: https://www.youtube.com/watch?v=tB-NIdhpjiI

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