Remortgage approaching. Self-employed. I don't earn as much as I did when I first got the mortgage.

wardy_mk

Hello. I'm hoping someone can help.

I've been in my house for 3.5 years now. I have 1.5 until I will reach the end of my mortgage 'deal'.

I'm a freelance designer. When I applied for the mortgage I was earning a lot more then I do now. Perhaps 20% more. 

My issue is that I got the mortgage pretty much for as much as I was allowed. It was tough enough back then to get one due to me being the only employee in my own limited company. 

So, I have around 18 months to figure this out. Obviously, I'll be working my hardest to bring my income up over what it was previously as my main focus but what else can I do as a company director/self employed person to maximise my chances of qualification when I need to apply. I've written now (18 months before) so I have a good amount of time to get something effective in place. 

I don't have any credit card debt, the only loan I have is finishing towards the end of the year, I'm perfectly capable of paying my mortgage each month despite earning less the last couple of years. 

Any advice from either a mortgage qualification side or a tax side would be very much appreciated.

kingstreet

A retention product from your existing lender has no status requirements and may be an easier option as a consequence.

If you do with to remortgage (that's a new mortgage with a new lender) you will need the income etc to make the prospect affordable.

wardy_mk

https://forums.moneysavingexpert.com/discussion/comment/80026734#Comment_80026734

Blimey, so essentially I could be left with a 'retention mortgage and nothing else' situation?

kingstreet

A retention product or your lender's standard variable or other "follow-on" rate you agreed to at the outset.

dander

Retention products aren't bad. When I've done it that way, as far as I can recall I was offered the same rates as I'd have been offered as a new customer.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/80026794#Comment_80026794

That isn't a bad thing. My 5 year deal is coming up and I will almost certainly use a product transfer rather than a remortgage. Most of the mortgage advisers that work for me are doing more product transfers than anything else.

dimbo61

We had a 5 years fix and then it reverted to a tracker deal which was 0.5% above the bank,s rate.

We went from 4.5 down to about 1% and did a little dance round the kitchen.

So dig out the paperwork and read what your mortgage reverts to after the 5 years.

Check on your lenders website what deals they have for existing customers

Yorkie1

Agree with the others about a product transfer with the same company being a valid option. I'm on my third fixed rate with my lender - absolutely no hassle, no solicitors' fees etc. Of course, it depends on your lender, but the mainstream ones should offer competitive products for you to choose from.

secla

If you can get a competitive rate just go for a product switch with current lender and there will be no financial checks

mi-key

In 18 months it is likely interest rates will be a lot lower, and mortgage deals, while not as low as they were 3.5 years ago, will be quite a bit less than they are now.

Transferring product with the same lender is very straightforward ( last time I did mine it was just online, picking the one I wanted and it went through instantly without asking me for any further details ), and you will probably find their deals aren't that much different from other lenders out there, and there are no income or credit checks etc..

ACG

https://forums.moneysavingexpert.com/discussion/comment/80026794#Comment_80026794

A product transfer to a retention product is something that is better than the standard variable rate but probably not market leading.

I bought my house before we had a kid and I used to work all hours 7 days a week. Then we had a kid and my priorities changed. I dont think I could get a mortgage for what I could, so I am now stuck with my current lender. Whenever I product transfer, I end up on a product that is around 0.5% above the cheapest products on the market.

Not ideal, but certainly not horrendous. They are ususally just about good enough to make you think you cant be bothered switching lenders - if you had the option.