Recently Self-employed Re-mortgage. Good Idea?

daveo138

I currently have a mortgage with a high street lender, which is at standard variable rate, following a low fixed-rate start.

I was made redundant about two years ago and became self-employed six months ago.

I want to know if I can get a better deal than I currently have - I'm not planning to move or borrow more money.

Current debt is £60k - LTV is about 27.3%.

I obviously don't have three years accounts, so what I need to know is...can I get a better deal than standard variable with a self-cert, and is self-cert my only option?

daveo138

Forgot to mention, I don't have any other outstanding debts.

inmypocketnottheirs

Best speak to a local whole of market broker. Tell them your situation and see what they can offer. I think the criteria is tightening at the moment following the NR debacle.

apk1

You will need to estimate your annual income, and go self cert or use a lender such as Bank of Scotland who will accept self employed with no minimum trading period subject to credit score, but at 27% ltv and such a small amount you should not have any problem, use a broker, but you may have to pay a fee for the advice, the proc fee on £60,000 will be very low !!

AndrewSmith

There are a number of considerations here.

The fact that you have only been trading 6 months will limit the lender/product choice available to you. At 27% loan to value self cert is not your only option and I certainly would not suggest that you estimate your earnings. If you decide to opt for the self certified route you still need to submit accurate income figures based on the trading history over the last 6 months.

Now, back to the actual rates etc themselves. With a mortgage of only £60,000 you may find that, given the inevitable set up fees, valuation fees, possible broker fees etc, when all is calculated and worked out on a true cost comparison that you may actually be better off in the long run staying on your standard variable rate until such times as you have at least one years accounts. This would then open up the possibility of Prime Lenders and high street rates without inflated setting up costs.

I don't normally make this suggestion but I do feel that you would benefit from a consultation with a broker to get a 'true cost comparison' for an incentive (fixed/discount/tracker etc) rate over staying on your current SVR. You should not have to pay them for this. You can repay them in 6 months time by asking them to arrange the new mortgage for you when it is the right time to do so.

Thanks

Andrew

MortgagesInc

Which lender are you currently with - can you not take a new rate out with them?

daveo138

#4
Is that RBoS or HBoS?

#5
I will give that serious consideration, thanks.

#6
That might be a possibility, I'm exploring all avenues.

apk1

bank of scotland / halifax - use the same application systems.

herbiesjp

Who is your current bank?

They may be able to offer you a mortgage based on what they see going through your account and on standard rates