Need to remortgage - & hubby just gone self emplyed with only 1 months' books

emmamack

Hi all

After a bit of advice if I may. My husband & I are just about to finish a 3 year fixed rate mortgage with Nationwide, the rate is 5.45% and just about to go up to their SVR. It was our first house & at the time we put down £12K & borrowed £169K over 35 years (we were on about £45 - £50K joint income between us back in 2005).

Since then our finances have improved & joint income went up to about £65 - £70K. We thought we'd be able to get a good deal when we remortgaged & were hoping to bring the mortgage term down a bit from the original 35 year length.

A few months ago however, hubby & I decided to make a life changing decision & he left his well paid office job and went self employed as a plasterer. Now he's really happy & enjoying it, and of course I'm happy but we've found ourselves in a bit of a pickle. Timing wasn't great to have bitten the bullet & it turns out he's just gone self employed as our fixed rate has come to an end. As he's only been self employed for a month we have no books yet to show a lender (we've been told we need 6 months - 2 years worth) and now I'm worried we can't get another fixed rate, which at the moment is really what we're after.

We reckon he'll realistically earn between £20 - £30K in the first year (nearer the 30, higher in following years as business grows) and we know affordability of the mortgage is no problem but of course this isn't what a lender wants to hear. We have three years good history with the Nationwide - does this not count in our favour? Also, we have good credit ratings and savings of at least £12K. Our house is now worth in the region of £220K so we have about £53K equity in the property (£167K left to pay).

We are financially stable and if hubby hadn’t picked the last couple of months to change jobs would have been in a strong position. Just wondered if anyone else has been in a similar position or can suggest who we should approach for the best deal. We’d like a 2 or 3 year fixed rate deal as we think we’ll probably be looking to move to a bigger house within the next 2 – 3 years.

Thanks

Conrad

Generally speaking a change of rate, assuming you remain with NATIONWIDE should not cause them to re - underwrite your case unless you wave a flag under thier noses.

If you change lender there are only a handfull that consider just a short trading period. I would stick with Nationwide if it were me.

emmamack

Thank you Conrad - you were right. After all the scaremongering from mortgage advisors about being self employed I just called Nationwide direct. They didn't ask anything about our circumstances as existing customers and offered a fixed rate of 5.83% with no fee to pay. It's for 5 years but the mortgage is portable, and we're both happy with that. Additionally, we even brought our term down to 28 years (had 32 still to go) so we are really pleased. Will also make over payments where we can to further reduce the term... Thanks again.

chappers

Was going to say exactly what you have just found out and to say even if you get stuck on Nationwides SVR, your husband is now in atrade where he is able to not only to some extent control how much he gets paid for each job but to be in a position to take on more work if needs be.
Just remember to set some money aside as the washing machine will take a hammering.
Good luck I'm sure your husband thinks going self employed is the best thing he ever did, I know I do.