Multiple income sources - best lender or broker to approach for remortgage?

newterrain

We are coming to the end of a good fixed rate mortage with Santander and the options they can offer us (fixed/tracker/ variable) are not attractive. So we are looking to remortgage to another lender, either to a tracker or just a decent variable rate.

We have a reasonable amount of equity (around 30%) and excellent credit ratings. BUT:
1) the mortgage is big (£463K), which we were able to get back in 2005 from Santander because it was the era of large income multiples and we were in well paid, long-standing senior permanent jobs.
2) both of us are now directors of our own limited companies and I also have one salaried part-time role and three additional (and variable) incomes on an employed basis from part-time, fee-paid roles. Our actual combined income would meet the requirements of several lenders to raise the mortgage required. But because it is not 'traditional' income, we face some difficulties, even though we both have three years of trading accounts.

We have tried talking to the brokers that specialise in getting mortgages for contractors. They can't cope with us because we are consultants rather than long-term contractors and so neither of us has a rolling contract with a fixed day rate.

ING Direct seems like a possibility, because their site says that for self-employed applicants, they will ask for tax returns to show proof of income. That is exactly what we want, because the tax returns show our total income from the various sources. But will they regard me as self employed given that I also have a salaried role and other employed income?

If ING is worth a try, are we better off approaching them through a broker (who might be able to 'package' us effectively) or direct (as we understand our income best - at least one broker I have spoken too found the whole thing too confusing...)

Thrugelmir

Is the mortgage interest only?

shortchanged_2

What rate does your mortgage revert to?

newterrain

In answer to the questions:

- currently part-repayment, part-interest only. But could move to full repayment if necessary to get a decent rate.

- rate it reverts to is 4.24%

shortchanged_2

OK so what rate was your old fix?

newterrain

It was 2.49%

somethingcorporate

a 7-year fix at 2.49%? sounds weird!

What is the house currently worth roughly? (so we can understand your LTV).

shortchanged_2

newterrain wrote: »

It was 2.49%

Are you serious? The BoE base rate was 4.5 - 4.75% during 2005.

Conrad

I'd suspect ING would decline if the Tax return shows various income streams as they would then not use the income multiple against all income, plus thier could be other pitfalls.

There are a couple of possible options but they depend on the loan to value, and note that lenders are valuing keenly so you need to be accurate in your opinion of the property value.

If the LTV is below 75% there are some attractive deals.

newterrain

Thanks to those with helpful advice.

Re: our current fixed rate, the rate I have quoted is the fix that has applied for the last two years. The original rate (from 2005) was obviously higher. We have had various deals with Santander since first taking out the mortgage, but have not had to be subject to income assessment since 2005. Hence why I am now asking for advice.

newterrain

Re: LTV. We have had 4 agents value the property in the last year as we were planning to sell. Lowest valuation £675K, most £700-725K. Prices in our area have held stable over the last few years or increased slightly. Santander have also revalued in the last six months following some renovations. We believe that they valued it at £700K.