Remortgaging when recently self employed

Fierybiscuits

Hi there.

Our 5 year fix ends next July so I'm starting to think about remortgaging and what that might entail. We currently have around £222k balance and there will be 30 years left come July 2027. Our rate is 2.75% so I know our payments will significantly increase whatever we do, but obviously I want to limit the amount as much as possible.

The complication is that I lost my job at the beginning of the year and have since gone self employed. While I've been trying to start my business, I took on a part-time job (2.5 days) for a bit of extra security, but I'm struggling to juggle both jobs as more work comes in, and am seriously considering handing in my notice. But I'm worried about the mortgage. I'm aware that lenders usually want to see two years books and I will only have been in business just over a year next July. Also, a big chunk of that will have been part-time (I can only devote around 1-1.5 days pw due to childcare) so the income will naturally be much lower.

Realistically, are we looking at having to go to a SVR mortgage until I have at least two years books? Is it worth me sticking out a part-time job so at least I'm employed when it comes time to remortgage? Our situation has changed so much since we took out our fixed rate that I don't know what our prospects are. We were both employed full time in 2022, with a combined income of around £60k. We've since had a baby and, though my salary has dropped significantly, my partner's has gone up to around £45k. My part-time salary is 18k so we're sort of breaking even compared to our previous income (without my business earnings), but of course the cost of living has risen so much, we now have a dependent, and the rates will be much higher. We have done a huge amount of work on our house since we bought it so hoping it'll be worth having it valued to try and get a slightly better rate, but I understand it won't make masses of difference in the end.

I could potentially make a fair bit more money being self-employed full(ish) time over the next year, but if it won't be taken into account because I haven't been in business long enough, then I don't know whether I'm better off trying to carry on in part-time employment. We always use a broker so will of course be taking their advice when the time comes, but just hoping to get opinions on my best course of action for the next 12 months. Does it look like we need to prepare ourselves for an SVR? I am not hugely financially savvy (if you can't already tell), and just want to do what's best for my family in the long run. Many thanks if you have any advice :)

MWT

No, you won't need to go to the SVR, just take a new rate from your current lender as there is usually no financial assessment when you do that.

Taking a new product from your current lender isn't like remortgaging to a different lender.

Talk to your broker after Christmas and they will be able to help you with the process.

born_again

Just go for a rate switch with your current lender. Requires no financials.

Fierybiscuits

Thanks @born_again. I didn't realise they wouldn't review our finances if we stayed with the same provider. I suppose it gives us less options, but good to know we can do that.

Fierybiscuits

Thanks @MWT. Really helpful advice.

ACG

who is your current lender?

Fierybiscuits

https://forums.moneysavingexpert.com/discussion/comment/82052976#Comment_82052976

It was Platform but I believe that's gone over to Co-op now.

ACG

And very soon Coventry 😂Your going all round the lenders without moving.

Platforms products now they are part of coventry are pretty good. No underwriting, no documents. You might not get the cheapest product but you should have something reasonably decent.