Fixed rate about to end - now self employed

CreditCardJunkie

Hi folks, hoping for some advice. Our 2 year fix (at around 2%) with Ulster Bank is about to end in Feb. We have 37k remaining on the mortgage. Since we last renewed with them I've become the sole director as a limited company which I believe they class as self employed. When they ask about any changes 1. Do I have to tell them about this? 2. Will this affect the rate we get? 3. Will they ask me to submit accounts etc?

sammyjammy

If you move to another product and keep your borrowing and term the same they won't ask any questions it will just be a product transfer, check their website and see if you can do it online.

sammyjammy

Switch your existing mortgage deal | Mortgages | Ulster Bank NI

ACG

1 - if they ask, you have to tell them. 
2 - very very unlikely. 
3 - I dont think so. 

Typically with Natwest (the English version of Ulster), you log on, tick a few boxes and choose your new product. 

JustDavid

1- As above, if asked you absolutely have to tell them.
2- No
3- If you are staying with the same provider, and making no changes to the existing mortgage (aside getting a new rate) you shouldn't be asked for accounts. If you already have the borrowing with them, it's illegal for them to make you a "mortgage prisoner" (Forced to stay on the follow on rate without offering alternatives). 

Even if you decided you wanted to to switch lenders, only have 1 (or less than) years accounts isn't always a blocker. There are specialist brokers out there for the self employed. MSE has an article all about brokers and there is a section on there covering off brokers for the self employed.

london21

CreditCardJunkie said:

Hi folks, hoping for some advice. Our 2 year fix (at around 2%) with Ulster Bank is about to end in Feb. We have 37k remaining on the mortgage. Since we last renewed with them I've become the sole director as a limited company which I believe they class as self employed. When they ask about any changes 1. Do I have to tell them about this? 2. Will this affect the rate we get? 3. Will they ask me to submit accounts etc?

re-mortgage online, if no changes to the product it is straightforward. 

CreditCardJunkie

Thank you all this was extremely helpful!

SprostonGreenHead

As a sole director of an LTD recently applying for mortgages I know a little about the general criteria of you’re thinking of shopping around or finding yourself needing to.

Some will treat you as “employed” if you fulfil certain criteria. IT contractors often fall into that category. If they do and you’re on a day rate they will base it on a 46 week working year, typically.

Most want to see minimum 3 months remaining on current contract or a promise of an extension. Some want to see 6 months. A small handful want as much 12 months (which is rare for day rate contractors).

Most want 1-2yrs minimum contract history in the same type of work without significant gaps (anything over like 4 weeks). Some will accept similar work but under a different regime (ir35 vs non ir35) as being the same type of work. Some wont.

Haven’t looked at Ulster Bank personally, but I find intermediaries portals best for checking lending criteria, rather than their main customer website.

There’s a few contractor specific brokers out there that will find you the best deal available, for a fee.

As others have said, you only need to tell them what they ask you to tell them.