Self Employed - existing mortgage

wibblewibble75

Hi all, I would be grateful for your help:
My wife and I are 1 year into a 5 year fixed mortgage with Santander.
I am about to leave employment and become only self-employed. (I've been doing self-employed work for a few months while also working in standard paid employment).
Do I need to inform Santander about this change?
If so, is there a chance they can 'withdraw' our mortgage or put the interest rate up?
I'm asking this because I'm worried that if they ask for proof of self-employed income, I've only got a few months earnings to go off, and obviously it's currently an amount that comes to a lot less than my previous year's salary.

OUNN

My understanding of it is that no, you don't need to inform them.

If you were going through the process of applying at the moment, it would be a material change of circumstances. But because you already have the mortgage - and crucially, you continue to pay it. You don't need to inform your lender.

People have children, change jobs, get made redundant etc all the time during mortgages. It's only if you start struggling to cover the mortgage the are problems.

Having said that, if I'm wrong, hopefully someone will be along to put me right shortly!

AnotherJoe

No you do not need to inform them, all they care about now and indeed all that legally matters is that you make the mortgage payments on time.
As OUNN says were you in the process of getting a mortage it woudl be a different matter. But you aren't.
Good luck with the new career.

wibblewibble75

Thanks for the replies.
Like you say, it's an existing, ongoing mortgage rather than a new application so there shouldn't be an issue, in theory. I know myself that affordability won't be a problem as my self-employed income will be similar to my salaried income; I'm just worried about having to prove that somehow to the bank.

AnotherJoe

wibblewibble75 wrote: »

Thanks for the replies.
Like you say, it's an existing, ongoing mortgage rather than a new application so there shouldn't be an issue, in theory. I know myself that affordability won't be a problem as my self-employed income will be similar to my salaried income; I'm just worried about having to prove that somehow to the bank.

You prove it by making the payments !