Remortgaging as self employed

[Deleted User]

Hi,

When you remortgage as self employed do lenders use the same process of looking at your last two/3 years net profits to determine how much they can lend you?
If you have been making your repayments fine but your net profits have decreased and your can't borrow the amount left on the mortgage when remortgaging, is your only option to stay with the current lender you have the mortgage with and just move onto their standard variable rate?

Thanks
Dave

kingstreet

If you want to remortgage (new mortgage with new lender to repay current one) your income/affordability will be assessed and lenders normally take an average of your latest two years' net profits.

However, if your profits have fallen, they may take only the latest year's figures and not an average as this will be more accurate/up to date.

If you plan to return to your existing lender to ask for a customer retention product, these may be offered without further status checks and provide an alternative to you going on to the "follow-on" rate of your current mortgage, normally standard variable rate.

[Deleted User]

Thanks for this info!