if self employed - regarding mortgages

tulip9181 · 27 June 2012 at 10:30PM

Hi, new to this! i've been in my job as a full time employed hairdresser for 15 years. i am beginning to contemplate flying the nest and going self employed. having a clientele is not actually my main worry. i have some savings - around 6k. i have had my house for 7 years now and we have less than 20years remaining. our mortgage deal has been up for sometime now but i've been reluctant to change as my relationship with my partner has been rocky and i wouldn't want to be tied in and have a huge redemption fee to pay if we were to split. so if i do go self employed is that going to make things difficult to change my mortgage? particularly as it could potentially be on my own! i will have no books or anything to start with obviously. its all a mess really

Wh05apk · 28 June 2012 at 4:07AM

Yes, without a doubt, assuming you have 25% equity, you may get away with 1 years accounts, otherwise you will need 2 years, given that your first years accounts will likely be low (as you will be able to write off set up costs) this could cause major problems.

Given your personal circumstances, you would probably do best to stay employed for now.

ACG · 28 June 2012 at 8:12AM

Its possible to find lenders with no early repayment charges or low ones or lenders who will allow you to port the mortgage to a new property or even take your partner off - but some of these are subject to further underwriting so if you were self employed and yoru accounts wernt upto much then you would find it impossible to remortgage.