HELP - Self Employed Mortgage Prisoner

davidgibbons

Hi

HELP- I am self-employed (sole worker) as a director of a limited company (physiotherapist). My partner is also a director as a practice manager.

We moved house and got an interest only mortgage through an advisor in 2007, with a view to be on Interest only for 2 years and then move over to repayment - all just before the big banking crash.

However, the lender "The Mortgage Business" - part of HBOS, whilst FCA regsitered, became inactive and left us on an SVR for the last 10 years - a very unfortunate 1 of 20,000 borrowers out of a market of 8.04 million borrowers !!

All this in a time when lending regulations became more strict and house valuations became stricter, reducing valuations of our home. Our SVR is now 5.2%. Attempts to remortgage over the last 10 years failed on these bases, as well as us having (lawfully) tax-efficient accounts, which didn't help.

Now valuations are back up to normal ranges again (I believe). The FCA are also at the consultation stage of proposed changes to responsible lending rules and guidance (CP19/14) which wants lenders to help people in my situation by urging lenders to allow remortgaging without extra borrowing using a proportionate modified affordability assessment tool for customers who are up to date with payments on their existing mortgage without borrowing more [ie affordability based on the fact that repayments have all been made without default (true in my case), and that the product being moved to will be cheaper].

Most lenders are already signed up voluntarily to a scheme particularly for internal remortgaging, however, there are still some regulatory barriers for lenders lending to customers coming from another company because they are currently with an inactive company (ie wouldn't be an internal remortgage) - this is my scenario.

My question is: WHO IS THE BEST EVER COMMISSION BASED BROKER THAT CAN CURRENTLY NAVIGATE THIS QUAGMIRE FOR ME AND GET ME BACK OVER TO A FIXED RATE MORTGAGE? Possibly interest only again, or full or part repayment, depending on the monthly cost.

Would prefer recommendations and advice rather than self-promoting/ self-selling - to remove bias

Hope someone can help / advise. Thank you.

Regards

David Gibbons

dunstonh

I am self-employed (sole worker) as a director of a limited company (physiotherapist).

Technically that means you are not self employed. Although lenders treat you in a similar way to the self employed.

Now valuations are back up to normal ranges again (I believe).

Valuations only get a small swing either way if the market is growing or falling. IN some areas of the country, house prices are falling again.

WHO IS THE BEST EVER COMMISSION BASED BROKER THAT CAN CURRENTLY NAVIGATE THIS QUAGMIRE FOR ME AND GET ME BACK OVER TO A FIXED RATE MORTGAGE? Possibly interest only again, or full or part repayment, depending on the monthly cost.

Forget interest only. That is unlikely to happen without a repayment vehicle. Can you afford full repayment mortgage?

Any local broker should be up to the task. Avoid the nationals and internet based ones. A local (as in size, not necessarily location) experienced broker should be fine. (smaller localised firms tend to be more experienced than the factory line online/telephone services).

Would prefer recommendations and advice rather than self-promoting/ self-selling - to remove bias

The board doesnt allow that to happen and to be honest, the brokers on this site would jump on anyone doing such a thing. if anyone PMs you then report them to the board admin. That is not allowed.

davidgibbons

Thank you very much for your reply.
I've just completed a very lengthy form for Habito (an online company) based on advice (? recommendation) from Money Savings Expert and with excellent reviews on TrustPilot, but do you still think that is not a good way to go? If so, how do I get them off my back if they keep pestering me?
I have come to see that interest only is very unlikely.
I'll have a look at local brokers now. Thank you

davidgibbons

Also, that is why I put "self-employed" because I am aware of how it is viewed - then clarified by stating director of limited company.
I'm wondering whether part repayment might be possible, because a jump to full repayment is more likely to cost more than my current interest only, even at 5.2%, and so will more likely require a full affordability check rather than a (discretionary?) proportionate modified affordability tool - if that is at all possible.
Perhaps I am destined to remain a mortgage prisoner? - previous attempts to move over have failed. I am just pinning my hopes on the current new regulations from FCA and the current consultation.

dunstonh

I've just completed a very lengthy form for Habito (an online company) based on advice (? recommendation) from Money Savings Expert and with excellent reviews on TrustPilot, but do you still think that is not a good way to go?

MSE will only "recommend" nationals. This was said because any company mentioned on MSE will get a large influx of customers and small localised firms cant handle that.

Generally speaking, the internet/phone based companies are factory line services. They are fine for the easy stuff but the difficult stuff they do not particularly like as it slows the conveyor belt down and, with many of these, they are on a timer per case. Plus, the admin often gets farmed out to unqualified assistants.

A lot of newly qualified advisers start in places like that as a stepping stone to starting their own firm or joining a local firm.

The general rule of thumb is that for complicated cases, you need to deal with the established local brokers.

Nebulous2

Meanwhile - don't make it all about waiting for something to drop in your lap.

Even if you cannot afford full repayment, you can overpay whatever you can afford, to get the capital sum down.

getmore4less

davidgibbons wrote: »

We moved house and got an interest only mortgage through an advisor in 2007, with a view to be on Interest only for 2 years and then move over to repayment

What happened to that plan?
Have you not saved the equivalent to a repayment or been overpaying the mortgage for the last 9 years.

davidgibbons

getmore4less - sent you a private reply. Thanks