The process of a re-mortage?

Kayalana99

Hiya,

3 years ago we barely got a mortgage on our joint income around 23k, my Husband is currently on 19k and I'm self-employed for the last 3 years but due to a lot of investment in the last year to a new area, the profit level will show around zero if not in minus for the last tax year.(and wasn't very high the 2 previous years due to building it up)

We also have had a 5k loan out from my Grandparents recently that will show up on accounts (also mainly gone into the business), and I'll be honest - technically I'm not supposed to be running a business from home.

My question really, is it easier to get a re-mortgage and do they look in depth like they do when you take your first one out or are they more flexible when you already have one?

My Husband had a poor credit rating when we first met (Wonga ...) and so this was the only company that we could go with (Also been together 5 years with no issues so that's 1 year to go until it's off his credit rating I believe) and the interest rate is about 5% so we could really do with switching but I'm just thinking given my partners wage is lower then when we got our first one and my business looks rubbish on paper + if I have to declare I'm running a business which I shouldn't be...is it going to be more hassle than it's worth? (Or we wouldn't get one anyway due to the low income? we get tax credits on top, but we were told we couldn't include these on the figures for first time mortgage.)

kingstreet

Are you remortgaging or going back to your existing lender for a customer retention product?

If the latter, you may be able to do this online with no further credit, status or affordability checks.

The remortgage probably isn't going to be an option as that means a new mortgage from a new lender to replace the old one and you will be checked same as any new borrower to that lender.

Kayalana99

Actually I was just going to ask if we went back with the same company would it be easier as they have a few products I can look into - only just looked what they offer.

Whilst I'm here we purchased the property at 86k, when it was worth 90k when talking LTV will they take the purchase price or the property value? I assume the 86k but it seems I'd get a better rate with a lower LTV so thought I'd ask.

kingstreet

Lenders usually use an indexed valuation to work out the loan to value.

You need to ask yours.

Also, make sure you are looking at products for existing borrowers not moving home, or products for those whose initial rate is ending, not at remortgage products.