Self-Employed Re-Mortgage

Delta1golf

Can anyone advise please?

I currently have untied a mortgage with a large high street lender for about 50% of my house value. I acquired the mortgage when I was employed as a salesman, however about three years ago I got made redundant and started working for myself. (Sole trading handyman registered for tax) I didn’t tell the lender as I was sceptical as to their response, and if I was able to pay as normal why upset the apple cart. Now I would like to borrow more (about £15,000 for a small extension) and I am wondering if I should approach the existing lender or just move to another. I have a good record in paying and have never dropped or missed a payment. So given a brief background, can someone advise on my options as a self employed person.
Thanks for taking the time
D

Rabiddog_2

Lying to your lender for three years , and then asking for more money? Hmm not a good start. Fess up.

Cazza

There's no reason for you to have told them when you went self employed, they wouldn't expect you to anyway, so you've done nothing wrong in that area.

Otherwise, you need to post a little more information. Who are you with at the moment? How many years accounts do you have and what is the net profit showing (I'm assuming you're a sole trader!) How much do you have outstanding at the moment and do you owe any money on credit cards or loans (including the ones that go through the business!). Thanks!

Cazza

Rabiddog wrote: »

Lying to your lender for three years , and then asking for more money? Hmm not a good start. Fess up.

Would you contct your lender if you found a new job? It's not really any different.

If you have the intention of doing this when you apply for the mortgage, or you're already in the process of doing it, then it needs to be disclosed. Stuff that happens after the mortgage completes is beside the point, lots of people's circumstances change!

herbiesjp

Rabiddog wrote: »

Lying to your lender for three years , and then asking for more money? Hmm not a good start. Fess up.

As I read it the client was employed when they got the mortgage - subsequently become self at a leter date.

That is not lying! Circumstances change!

A lender bases a lending decision, on current situation, not a change in circumstances in the future.

There is no requirement for a borrower to advise a lender of a change of employment status when it happens.

Now that the applicant would apply for more money, is the time they need to advise the current lender or new lender

So any lending will be based on your current employment status and income, and that may or may not mean your current lender being the best option for you

Delta1golf

Thanks for the v/fast replies.
Ok information is vague but ok I hope. Current mortgage (A&L) is for 62K running for the next 17 years. House valued at 130K. Business profit is about 10K with accounts for the last three years. No outstanding debts. Other outgoings total about £150 p/month. Is there a company, if not my existing, that can help?

If is possible that I could get a “fixed rate” mortgage that is the same payments as my existing “un-fixed” that includes the extra 15K. Or do I have it around the wrong way.

D

Cazza

TBH, with £10,000 showing as your net profit, you'd struggle to find anyone to lend the £62,000 you have already, let alone the additional £15,000 you need.

This is the problem that many self empoyed people have, as it's your accountant's job to make your income appear as low as possible, it just backfires when you want to borrow.

Do you have income from any other sources?

Delta1golf

Sadley I have no other forms of income. It is worth approching my present lender or will it be a waste of time.