Mortgage as full time employed but remortgage as self employed

ItsyBitsySpider

Hi All,

First of all a big thanks for the wonderful advice I found on these boards so far. I have been finally offered mortgage by Abbey. Though the interest rate on Abbey mortgage was higher than HSBC one yet I opted for Abbye due to no booking fee and free valuation. We have been offered mortgage as full time employed couple.

In the start of next year, I am planning to go self employed i.e. director of limited company.

My question is how would that affect the prospects of remortgaging two years down the line in December 2015.

Many thanks

ACG

If its anything like today, then you would only have one years accounts which would make it quite difficult assuming the LTV is above 85%. If its below that, then you may have the odd lender but rates would not be fantastic.

You could also speak to abbey and see what retention products they have at the time.

ItsyBitsySpider

ACG wrote: »

If its anything like today, then you would only have one years accounts which would make it quite difficult assuming the LTV is above 85%. If its below that, then you may have the odd lender but rates would not be fantastic.

You could also speak to abbey and see what retention products they have at the time.

Thanks ACG for prompt reply. How many years of accounts you normally require to secure a decent deal?

You mentioned retention deals. If there are some retention deals other than the one I would be at present - won't they require to reassess the remortgage application. Please pardon my ignorance, I know very little about remortgaging process.

ACG

Its fine, its a forum so you can ask questions... i have to ask other brokers at times and they ask me, nobody can know everything.

Retention deals usually go through without having to reassess everything.

With 3 years accounts you should have access to everything - assuming affordability fits (its usually averaged out to work out your income). Although some lenders will accept 1 or 2 years worth.

GMS

Why not look at a longer term fixed rate to start with so you don't need to remortgage in 2 years time?

3 years accounts is best, some lenders will accept 2 and a few 1.

ItsyBitsySpider

Thanks ACG for kind words and wonderful advice.

GMS Thank you for your reply. The mortgage offer has been issued, my mortgage broker does not charge a fee. It may take at least a month to complete all the searches etc. I am not sure if I could ask him to look for other options while all the work on his part already has been done.