Mortgage switch with recent self employment: advice please!

jellybean400

Hi

My other half and I have a mortgage with Natwest that was arranged 4 years ago when both of us were in permanent employment. We've both since been made redundant: I've been freelance since March 2018 and he's about to start a contracting role.

We will be coming to the end of our current fixed rate in the new year, and I'm hoping there will be a way to avoid going on to the SVR in our situation. My main questions are:

• I have about 1 year of meaningful 'records' since going Self Employed as I took a career break for 6 months post redundancy. Is 1 year enough for a remortgage? [ETA obviously I have tax returns etc for each year but I wasn't really earning until the second year of Self Employment]
• Would taking an 'offset' product linked to our savings put us in a better position?
• Would it make any difference if I were to accept a part time role that I've been offered now, or is 6 months of PT employment unlikely to help?

.
Possibly there is nothing to worry about and they will let us switch without having to go through eligibility checks again, but I can't tell from the website if this is likely to be the case.

Anyone have experience?
thank you!

[Deleted User]

Natwest cant get rid of you. You will be able to log in to their existing customer portal, select which deal you feel is best and they wont request any further documents. They email you a confirmation that you have to digitally sign and then the new rate is confirmed. Simples!

However, Natwest do not have the best rates for existing customers in the industry. In fact they are unfortunately one of the few lenders that charge existing customers more than new customers. Thats just bad luck really, not a lot you can do about that.

There are some lenders that do 1 year self employment for mortgage applications. However, if you have more than a year then some will work off the most recent year meaning you may be able to move to better lenders. Especially with maternity involved lenders are very careful to not penalise you for having a child, they may take your recent year and an accountants projection to confirm sustainability.

Offset - No idea. You'll have to do the sums. It wouldnt get you a better mortgage as the lenders that do offset have criteria to hit. If you dont qualify for the loan you dont get to choose if its offset or not. Its not different criteria for offsets.

Part time - If its genuine income that will continue post application then its income that could be used for the mortgage. If you have a new part time job however they may question the sustainability of your self employed earnings.

Its worth exploring other options to see if the numbers add up with a better lender. At least you'll always have the option of staying with Natwest.