Remortgage but now self employed

Dakotasdream

Good evening. I'm new to these forums so please be gentle. I have a dilemma and need help. I have held my mortgage with Nationwide for nearly 4 years. I was always employed but I am now going self employed from May 2021. I have also worked outside the UK since September 2020 on a contract which is due to finish in May 2021. I will then come back to the UK and work on a self employed basis, with a view to going overseas again later in the year for the winter. My home is rented out as I live with my partner in his home. I want to keep my home going as a rental as its also an investment. I am a UK resident, not an ex-pat. 

My question - can I lose my home if Nationwide consider me a risk?, and which lenders would accept such an erratic lifestyle where my work takes me overseas on a regular basis?. 
I would appreciate any advice anyone can give me please, I am really worried that I could lose my home!

K_S

@Dakotasdream It's not clear what you're worried about exactly.

I assume you have a consent-to-let with Nationwide? If so, when the current fix expires you could remortgage to an interest only BTL product. If you're classed as a UK resident that should be fairly straightforward. As long as you are on a CTL, afaik Nationwide will not allow you to switch products at the end of the current fixed term.

Dakotasdream

K_S said:

@Dakotasdream It's not clear what you're worried about exactly.

I assume you have a consent-to-let with Nationwide? If so, when the current fix expires you could remortgage to an interest only BTL product. If you're classed as a UK resident that should be fairly straightforward. As long as you are on a CTL, afaik Nationwide will not allow you to switch products at the end of the current fixed term.

Thank you for your reply. Yes I currently have a buy-to-let mortgage with Nationwide. I pay 1% extra on top of my current fixed rate, which is now due for renewal (end of March). I am worried that I will not get a BTL mortgage because I am going self employed and they will reject my application. In your experience, do you think they are likely to do this?

K_S

Dakotasdream said:

K_S said:

@Dakotasdream It's not clear what you're worried about exactly.

I assume you have a consent-to-let with Nationwide? If so, when the current fix expires you could remortgage to an interest only BTL product. If you're classed as a UK resident that should be fairly straightforward. As long as you are on a CTL, afaik Nationwide will not allow you to switch products at the end of the current fixed term.

Thank you for your reply. Yes I currently have a buy-to-let mortgage with Nationwide. I pay 1% extra on top of my current fixed rate, which is now due for renewal (end of March). I am worried that I will not get a BTL mortgage because I am going self employed and they will reject my application. In your experience, do you think they are likely to do this?

@dakotasdream Unless Nationwide has changed its CTL policy, there won't be any renewal/switch allowed. From 1st April, you'll likely be put on the SVR+1%, which will come to around 4.5% or so. 

As long as you're currently employed, if should be fairly straightforward to remortgage to a BTL but in your place I wouldn't delay it for too long given that you're only a couple of weeks away from the end of the fix.

Dakotasdream

Many thanks for replying. I will call them tomorrow and get things moving as clearly there is a time issue here. They have stated that i will automatically revert to the normal standard rate which puts an additional £100 a month onto my current payment which is quite excessive. Ideally I would like a fixed rate for 5-10 years, is that likely on a property that is rented out for investment purposes only?. (apologies for the many questions) but i do appreciate your sage advice

K_S

Dakotasdream said:

Many thanks for replying. I will call them tomorrow and get things moving as clearly there is a time issue here. They have stated that i will automatically revert to the normal standard rate which puts an additional £100 a month onto my current payment which is quite excessive. Ideally I would like a fixed rate for 5-10 years, is that likely on a property that is rented out for investment purposes only?. (apologies for the many questions) but i do appreciate your sage advice

@dakotasdream Nationwide do not offer BTL products, so they aren't going to be able to move you to one. I hope that makes sense.

Yes, you could indeed get an interest-only BTL remortgage (moving to another lender) fixed for 5 years. Not sure about 10, I'd have to check.

You choice of lenders is likely to be limited by the fact that you have lived in that property in the past and the fact that you don't own the house you currently live in. When you're ready to remortgage, I would recommend getting in touch with a whole of market broker who can place you with an appropriate lender.

Dakotasdream

Thank you. I really appreciate your advice tonight. 

getmore4less

Definitely decent broker time on this one.
How do your numbers stack up on the rental?

LTV and gross yield are relatively good indicators.