Re-mortgaging for a self-employed couple

Andycdesign

Hi, I have an appointment with my mortgage provider next week, but hoped to get some info from others in the same boat:
My wife and I have been with the same mortgage provider for 12 years, and in our current house for 10. About a year ago both of us became self employed (in separate endeavours) My wife is an artist, I am a designer, who although technically self- employed actually just works for one company, on effectively a full-time basis.
We would like to remortgage to release a little of the equity in our house to carry out some improvements (kitchen and bathroom). We have approx 40k of equity, and hope to get 10-15k for the improvements. My question is, how will our employment status affect things? We have been 'perfect' customers for the past 12 years (never any missed or late payments). Do you think our mortgage company will be wary of lending to us given our changed employment status, or does our track-record with them count for something?
Any advice/ experience appreciated, thank you.
Andy

Yorkie1

Lenders now have to look at affordability criteria and evidence of forms of income.

If self-employed, you will need to provide evidence of your income, usually through SA302's (tax forms). With only 1 year's trading each, things are likely to be difficult.

If you were only looking to change mortgage product without taking out extra lending, then you could do it online without any further credit checks. But the application for extra lending will mean effectively a full affordability check.

NB. 'Remortgage' as a term means getting a new mortgage with a new lender.

Thrugelmir

Andycdesign wrote: »

We have been 'perfect' customers for the past 12 years (never any missed or late payments). Do you think our mortgage company will be wary of lending to us given our changed employment status,

You are to have answered your own question. Goes without saying that a complete change of circumstances may well impact their view. Why wouldn't it?

amnblog

Self employed trading for one year only limits you to a handful of lenders and your current lender will most likely not be one of them.

You may find your adviser talks about a second charge loan or top up mortgage for the extra, keeping your current arrangement in place.

HappyMJ

Andycdesign wrote: »

Hi, I have an appointment with my mortgage provider next week, but hoped to get some info from others in the same boat:
My wife and I have been with the same mortgage provider for 12 years, and in our current house for 10. About a year ago both of us became self employed (in separate endeavours) My wife is an artist, I am a designer, who although technically self- employed actually just works for one company, on effectively a full-time basis.
We would like to remortgage to release a little of the equity in our house to carry out some improvements (kitchen and bathroom). We have approx 40k of equity, and hope to get 10-15k for the improvements. My question is, how will our employment status affect things? We have been 'perfect' customers for the past 12 years (never any missed or late payments). Do you think our mortgage company will be wary of lending to us given our changed employment status, or does our track-record with them count for something?
Any advice/ experience appreciated, thank you.
Andy

I'd think about getting a personal loan instead. They have very similar rates to mortgage rates without the fees that a mortgage has and will lend to self employed applicants much more readily.

deaston

I was in the same situation a few years ago - I'd been self-employed for one year when we wanted to move home and so borrow almost double.

Halifax were happy that, because I hadn't changed career (I was still working in the same field with the same clients, just no longer as staff) they took my year of accounts and my previous two years of P60s.

Andycdesign

Thanks for all the replies.
Deaston, my circumstances are very similar to yours, so hopefully I may get a similar outcome. My lender has a reputation as one of the more helpful companies, so hopefully they will be able to help or at least suggest alternative options.

libf

Andycdesign wrote: »

Thanks for all the replies.
Deaston, my circumstances are very similar to yours, so hopefully I may get a similar outcome. My lender has a reputation as one of the more helpful companies, so hopefully they will be able to help or at least suggest alternative options.

A few years ago is before MMR. The checks for mortgages are much more stringent now.

http://www.fca.org.uk/consumers/financial-services-products/mortgages/mortgage-market-review