Becoming self-employed...what happens with mortgages?

LCFC_Foxile

Hi all,

Looking for some advice here...

I'm in the process of going self-employed, & am currently on a 3-year 'interest-only' mortgage deal that runs out in April 2011.

When I was an employee, I simply 'tarted' from one deal to another every 2-3 years to ensure I was getting the best deal on each occasion.

However, by the time April of next year comes round, I'm assuming I won't be able to do this, as I will have only have been self-employed for around 6-7 months by then.

So, can anyone tell me if I'll still be in a position to see what other deals our current lender has, or will we simply be placed on one of their normal rate mortgages?

Cheers...:)

dunstonh

However, by the time April of next year comes round, I'm assuming I won't be able to do this, as I will have only have been self-employed for around 6-7 months by then.

You will probably find it difficult to remortgage but you should be able to change your deal with the existing lender with no problem.

LCFC_Foxile

Thanks Dunstonh!

And would I be correct in thinking that my current lender will base what they lend us on what I am earning?

In effect, my self-emp earnings (for the time up to next April anyway), will be less than my employee earnings.

herbiesjp

If you just move onto a new deal, without increasing your borrowing, you will be fine on a rate switch with your current lender.

If you want to borrow more, the lender will treat as a brand new application and will want to do full underwriting i.e proof of income - in your situation, you will not have enough income history (accounts) to verify your income.