Self employed and a new mortgage deal

Meka3256

Hi all,

I bought a house last year and my mortgage deal was for 2 years (so deal ends May 2016). For nearly 4 years I have been employed on fixed term contracts, so whilst this limited my deal options last year when buying my house, I was able to get a mortgage through Santandar.

I am currently employed until December 2015, but am considering becoming self-employed in the same industry (I am a senior HR professional). However I appreciate this could affect my ability to take out a new deal as I wouldn't have 3 years of accounts (and actually not even 1 year). But having done some research, I wondered if the fact I was employed on fixed term contracts before formally becoming self-employed might mitigate the need to have 2 or 3 years accounts for my business, as I could provide 5 year history of short term contract work. Does anyone have any experience of this?

In case it makes any difference, I am 32 and bought the property alone. My net income per month is £2900 ish and I have no debts (other than student loan) and a good credit rating. My mortgage was originally for £185k with a deposit of £62k. I think the value of my house has risen by about £100k (I live in SE London which went become very silly just after I bought my property). Becoming self employed wouldn't necessarily raise my income, but would mean I could work less - so it is a lifestyle decision, rather than a desire to increase my income.

Thanks in advance for any thoughts.

dktreesea

Renegotiate your mortgage going forward first, before becoming a freelancer/self employed. Mortgage rates for the newly self employed can be quite high, - if they find someone to take their existing mortgage on - as in sometimes 3 to 4 percentage points higher than quoted to permies with a decent work history.