Self-employed mortgage options

northerner999

No one was able to answer this when I asked a while back, so trying again.

I will be self-employed in the UK from June 1, earning around 47Kpa with a lodger contributing a further 3Kpa. I have just under 97K outstanding on a flat that cost 140K four years ago, was valued at 150K at remortgage two and half years ago when I moved abroad, and could be anything from 120-140K now I estimate (Zoopla have it at 140K+ but i'd be surprised).

I consider my work secure, I have a contract with a company that has a minimum term of 12 months and is then rolling. As I've been out of the UK (working for said company) I don't have any self-employed accounts - with no previous accounts and a term of employment that is not on paper guaranteed beyond 12 months am I going to have many options for remortgaging? I'm thinking of letting it roll onto the Halifax SVR when my fix expires in the autumn as my main concern is the ability to overpay without ERCs as I've got my rainy day fund and no kids or other debts other than a student loan I expect to pay off within three or four years.

Thrugelmir

northerner999 wrote: »

No one was able to answer this when I asked a while back, so trying again.

I will be self-employed in the UK from June 1, earning around 47Kpa with a lodger contributing a further 3Kpa. I have just under 97K outstanding on a flat that cost 140K four years ago, was valued at 150K at remortgage two and half years ago when I moved abroad, and could be anything from 120-140K now I estimate (Zoopla have it at 140K+ but i'd be surprised).

I consider my work secure, I have a contract with a company that has a minimum term of 12 months and is then rolling. As I've been out of the UK (working for said company) I don't have any self-employed accounts - with no previous accounts and a term of employment that is not on paper guaranteed beyond 12 months am I going to have many options for remortgaging? I'm thinking of letting it roll onto the Halifax SVR when my fix expires in the autumn as my main concern is the ability to overpay without ERCs as I've got my rainy day fund and no kids or other debts other than a student loan I expect to pay off within three or four years.

Speak to a mortgage broker and sound them out.

Whilst you may consider your employment secure, a fixed term contract is is just what it says. Lenders may take different stances depending upon factors such as the level of equity in the property. Improving the LTV is the only way of getting the best rates. Under 75% LTV rates are improving, over 75% rates are worsening. Reflects the lenders view of risk.

VIGILANT22

It's easy to answer...as you're an existing customer of Halifax they offer a very simple product transfer service....you just call and discuss what's available if you want a new mortgage, no credit checks etc

http://www.halifax.co.uk/mortgages/halifaxmortgagecustomer.asp

northerner999

Thanks guys.