self employment support scheme and remortgaging

abba1772

I'm due to remortage in April 2021 

I'm trying to find out if claiming the self employment support scheme grant through HMRC would hinder my chances of us remortgaging.

Even my financial advisor doesn't know the answer 

We are nearly done clearing our credit card debt and with only 1 left to clear which will be done by Xmas and hoping to save £2-£3k to fling towards the mortgage when remortgaging to get a better LTV ratio 

Hubby is employed And I'm self employed 

izoomzoom

Never asked me about anything to do with SEISS, although it didn't appear on the joint bank statement we supplied. (It went into my 'business' account'). A colleague who applied to same lender, at the same time, had LOTS of Qs and I think lender down-graded the amount the were prepared to loan.
I'm going to apply for the 2nd grant, as soon as I complete on Friday.

Thrugelmir

Do you need to remortgage?  Is your existing lender uncompetitive?

abba1772

Thrugelmir said:

Do you need to remortgage?  Is your existing lender uncompetitive?

Hi @Thrugelmir   Yes we do need to remortage as we are with aldermore whose rate is 5.37 as hubby had a default on his credit file which was 5 years old when we got a mortgage so beggers couldn't be choosers.  He has a great credit score now everything up to date etc so our financial adviser reckons we can get one from a high street lender I would prefer bank of Scotland/ Halifax  as thats who we bank with 

By remortgaging we would save roughly a hundred a month

abba1772

izoomzoom said:

Never asked me about anything to do with SEISS, although it didn't appear on the joint bank statement we supplied. (It went into my 'business' account'). A colleague who applied to same lender, at the same time, had LOTS of Qs and I think lender down-graded the amount the were prepared to loan.
I'm going to apply for the 2nd grant, as soon as I complete on Friday.

Mine went into my personal.account so no doubt I'll get bombarded with questions so hopefully it won't have much of a impact 

Contacted Halifax  and they said they would not discriminate against those who had to receive the grant so fingers crossed

MovingForwards

@haras_n0sirrah has been commenting on threads about the grant and mortgages / remortgages. Hopefully she will be able to say if any of her clients have hit any issues. 

Side note - what is currently acceptable / unacceptable doesn't meant that will be the case when you come to remortgage.

Cscott139

A lot will depend on what industry you are in and if current bank statements show that income is back to normal. Claiming the SEISS payment on its own is not something that would automatically mean you cannot get a mortgage. All self employed mortgage applications are going through full manual underwriting at the moment which does mean that the process is taking a lot longer than usual.

abba1772

I work as a registered childminder but was working throughout due to having vulnerable children placed through social work but my income did take a hit thanks to covid 19 

izoomzoom

@abba1772 - also a CM. I had quite a lot of online chat with other CMs who were given a hard time. Although I believe all our individual circumstances would have been vastly different. 

chillicheesedog

Not the same but when we applied for a mortgage with HSBC they specifically asked about SEISS and other government help.
We got the mortgage but it did worry us.

abba1772

chillicheesedog said:

Not the same but when we applied for a mortgage with HSBC they specifically asked about SEISS and other government help.
We got the mortgage but it did worry us.

Did they ask you why you applied for it??? I thought I was doing the right thing about not applying for mortgage holidays  etc and that never gave it a thought About the grant mucking up our chances 

Hopefully it won't