Self employed remortgage

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.

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.
remortgaging now self employed

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 best possible interest rate and terms.

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

self employed mortgage loan

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.
Based on 52 reviews
Georgiana Olescu
Georgiana Olescu
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Paul is an amazing broker, very helpful, responsive to emails and patient with customers. The process with him was quick and easy as his work ethic is impeccable. We are beyond impressed and happy with his services and that we got to work with him.
Valerie O
Valerie O
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Exceptional service provided by Paul, I could not have asked for better. Definitely does his due diligence and goes above and beyond. Highly recommended!
Bonnie Frost
Bonnie Frost
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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
Johnathan Lowery
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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.
Adeel Sarwar
Adeel Sarwar
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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.
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I would highly recommend Paul as a mortgage broker. As a first time lone buyer I began the process feeling very out of my depth, particularly in a market where mortgage rates are very high. But from the get go Paul provided reassurance and practical guidance and has been immensely helpful throughout the process. I've really appreciated his responsiveness, honesty and support.
Louise Griffiths
Louise Griffiths
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I reached out to Paul 2 years ago and giving this review now because I wanted to ensure that I could give a true review of what benefits I have experienced from using his service. I am thrilled with the financial expertise given to me by Paul. His skillful negotiation secured me an excellent mortgage rate within a short turn around time. This has not only set me on the path to paying off my principal balance but has also allowed me to simultaneously build a solid emergency fund. His initial guidance has been invaluable in shaping my financial future. I look forward to working with Paul again, once my 5 year plan is near its end. Highly recommended!
Calum Hebron
Calum Hebron
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Paul has been consistently excellent, ensuring we got the best possible mortgage deal at a time when rates weren't great. Paul worked with us to understand our financial complexities and went above and beyond to ensure they were understood by mortgage providers. We've been made to understand every stage of the process, and as first time buyers we were able to feel confident in the decisions we made. I would highly recommend working with Paul at Your Property Financial.
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My almost a year-long journey with Paul as my broker has been truly amazing, despite a few hiccups during the mortgage process. Working with him has been the best decision ever! As a first-time buyer, I lacked knowledge about purchasing a home, but Paul's guidance and expertise were outstanding. He explained things in a clear and concise way. What impressed me the most was Paul's responsiveness. He promptly addressed all my questions and concerns, never making me feel like a bother. Even when I faced challenges, Paul's determination and problem-solving skills were unwavering. I felt so supported throughout the entire process. Thanks to Paul's unwavering support, I managed to reach this point. I highly recommend him to anyone, especially fellow first-time buyers. Paul's knowledge, patience, and reliability are unmatched. He's not just a broker; he's an invaluable ally in this complex process. Thank you, Paul!
Alistair Prestidge
Alistair Prestidge
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Paul helped me to get my Mortgage approved in less then 48 hours! He has been great and I can’t recommend him highly enough. His communication is excellent, and he helped me understand each stage of the process easily. Thank you so much for helping me buy my very first home! I will most certainly be recommending Paul to friends & family!

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 best possible 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 best 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 best 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

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