Thinking of going self-employed - mortgage renewals

lmitchell

Hi all,

I wonder if someone a little more clued up than I can help out...

My fiancee and I are currently on a five-year fixed mortgage until 2020. I'm currently planning to go self-employed by the end of 2017, so I was just wondering how things will work when it comes to renewing my mortgage?

Will I have to inform Virgin Money that I'm self-employed if we're merely renewing rather than remortgaging? Will we have a job even renewing if I'm self-employed?

Thanks for any knowledge you can share!

kingstreet

lmitchell wrote: »

Will I have to inform Virgin Money that I'm self-employed if we're merely renewing rather than remortgaging? Will we have a job even renewing if I'm self-employed?

No. Customer retention products usually don't have further status checks.

No, as stated.

lmitchell

Hi there,

Thanks very much, that's quite a relief! So put simply, I'd only need to worry if we were to remortgage fully?

I've noticed on here (http://uk.virginmoney.com/virgin/mortgages/existing-customers/end-of-deal/choose-how-to-switch.jsp) it mentions if I've had a reduction in salary or working hours?

kingstreet

If you are remortgaging, that is using a new mortgage with a new lender to replace the old one on the same property, you will be assessed as any new borrower, with evidence of income, valuation etc.

It would appear by using the online option, you will avoid interaction with humans and avoid the advice process where you will not be asked for any evidence of income/status.

lmitchell

My only concern is that by using the online option I could bypass the evidence of income process, but if they were to find out down the line otherwise could that void the mortgage? Or am I thinking far too deeply about the process? I'm assuming I'm far from the only one to have taken this step before.

kingstreet

Once they lend to you, they are stuck with you. Your only part of the deal is to make the payments on time.

amnblog

lmitchell wrote: »

My only concern is that by using the online option I could bypass the evidence of income process, but if they were to find out down the line otherwise could that void the mortgage? Or am I thinking far too deeply about the process? I'm assuming I'm far from the only one to have taken this step before.

You are crediting the Lender with a level of risk management that fortunately the regulator does not currently ask them to adhere to.
Nor do they have the facility to handle.

Every day people are going self employed, losing jobs, changing jobs, changing partners, going part time, having children and retiring, all without informing their mortgage lender.

As KS says, you need not worry.