Re-mortgage question

amazon1234

I'm concerned about my employment status when I come to re-mortgage in 14 months.

My partner and I took out a mortgage on a house we bought last March (with a 2-year deal). We used both of our earnings to receive the initial mortgage, but last month my employers changed the way all staff are paid. Rather than being a salaried employee, all staff have been made self-employed, so we have to pay our own tax and NI, despite the fact our hours, working conditions, notice periods etc remain exactly the same. Will my new status as self-employed mean I might struggle to have my income accepted for a re-mortgage? It's worrying me!

kingstreet

Yes. It does.

You may be limited to a customer retention product from your existing lender. These are often available without further income/status checks.

amazon1234

Thanks for the reply. My lender does offer a customer retention product without any new checks, which would have been a possible solution but we have renovated the house fully, and wanted to roll the loans taken out to pay for the works into the new mortgage (the current value of the house far exceeds the mortgage and loan combined).

amnblog

Sounds like you may have limited options to do that. Certainly before your current rate ends. Speak to a mortgage broker who can assess your case in detail.