Newly self employed - mortgage renewal

mawk86

Hello, 

My partner and I signed into a 2yr fixed rate mortgage in September this year. 

At the beginning of November, my partner was made redundant and he has decided to start his own business. Whilst the business has so far been profitable, and has secured profitable contracts until May next year, my partner is taking a lower wage than when we secured our mortgage, whilst the business grows. 

Unfortunately he won’t have three years worth of books when it comes to renewal, is there anything we could be doing to strengthen our position for renewal? We bought the property for lower than market value, there is approx £60k equity in the property at the moment. 

Thanks 

ACG

Some lenders only need 1 years, some will work off 2 years. 
Alternatively you could just switch products with the lender you are with - there are usually no additional affordability checks for that. 

mi-key

I would second ACGs advice. I am self employed as well and when I changed products with my existing lender they just put it all through automatically with no need for any checks. Most lenders all have pretty much the same deals available, so is often easier to stay where you are. 

DullGreyGuy

Renewing with your current lender will generally be simple assuming you've made all your payments on time. 

Moving to a new provider will be a little more challenging but it can depend a little on what the business is and not just the duration its been running. 

mawk86

ACG said:

Some lenders only need 1 years, some will work off 2 years. 
Alternatively you could just switch products with the lender you are with - there are usually no additional affordability checks for that. 

Thank you all for your responses. 

Our current mortgage is with The Mortgage Lender (first time buyers and my partner had a 4yr old satisfied CCJ) and we were hoping to be able to move to a high street  lender, however it’s good to know that the option of remortgage with them should be pretty straight forward 

mi-key

mawk86 said:

ACG said:

Some lenders only need 1 years, some will work off 2 years. 
Alternatively you could just switch products with the lender you are with - there are usually no additional affordability checks for that. 

Thank you all for your responses. 

Our current mortgage is with The Mortgage Lender (first time buyers and my partner had a 4yr old satisfied CCJ) and we were hoping to be able to move to a high street  lender, however it’s good to know that the option of remortgage with them should be pretty straight forward 

Check what deal your existing lender will give and compare with the high street ones. Often the difference in monthly payments is small enough to not make it worth going through all the hassle of swapping to someone else. Being self employed, if you spend hours faffing about sorting it out, that is all time you could have been earning money for yourself!