Mortgage fixed rate ending - now self employed

lexaas

Hi
My husband and I have had various fixed rate repayment mortgages with Santander for over 10 yrs (prev A&L). The most recent 3 yr one is coming to an end soon. 6 years ago husband became self employed, he also employs me so we are both reliant on his wage effectively. If we tell Santander, is this change in status likely to affect the product they can offer us? I know that if we were trying to get a first time mortgage it would definitely be an issue but if we've already paid over half our mortgage are they likely to be awkward? We are also thinking of borrowing an extra 10k to add to the rest of the term of the mortgage. Thanks very much in advance.

amnblog

If you borrow extra they will ask about income. To swop rate only they will not.

Being self employed is not a problem if you are profitable and can prove it. If you are hanging on by a thread that is a different matter.

Richard_Pia

Why have you only taken mortgages with Santander, have they always offered the best deal? You could have been paying over the odds all this time if other lenders we're offering cheaper products.

Just because you are self-employed it doesn't necessarily make it any more difficult to get a mortgage, so long as you have accounts to evidence your income. There are lenders that can use your 'employed' income as well, even though you work for your husband.

adandem

We just went onto a new fixed with Santander, the rate was still very competitive at the time. No questions were asked.

Richard_Pia

If borrowing extra, Santander would effectively treat you like a new borrower and so would carry out affordability checks requiring proof of income, expenditure details, credit search etc.. A valuation will also be required though they may be able to use an automated valuation.

As this is pretty much the same process as remortgaging to another lender there's no real advantage to staying with Santander, particularly if you can get a better deal elsewhere.