If you’re self-employed, the remortgaging process can be a bit more complicated, and requires a bit more work.
We’ve asked Katie Holland, Mortgage and Protection Adviser, to explain what you need to know when it comes to remortgaging as self-employed.
Over to Katie
Remortgaging simply means that you’ve swapped your current mortgage for a different one. This can either be with your existing mortgage lender or a new provider.
Most people tend to remortgage every time their current mortgage deal comes to an end, but when you’re self -employed, it can be a little more complex, and depends on how long you have been self-employed for.
Newly self-employed
Whether you’re a Sole Trader or an LTD Company Director, generally, lenders require at least 2 years of tax returns to be submitted for them to feel comfortable with the income. However, there are lenders that can consider 1 year’s trading, depending on what experience they have prior to going self-employed – this may be consequent in higher interest rates as only specialised lenders would potentially consider this.
Already self-employed
Lenders usually take an average of the latest 2 years income. We do have lenders on panel that will work off latest years figures, but again this may affect the rate you secure. If you’re a sole trader, lenders will work off your income, showing on your SA302/Tax computation. If you’re an LTD Company Director, you may have the option to use your share of the net profit showing in your company accounts to boost your affordability.
Documents:
- Latest 2 years SA302’s and corresponding tax year overview.
- Latest 2 years company accounts (Ltd company directors).
- Latest 3 months business bank statements.
- Accountant certificate may be requested from the chosen lender.
Please note when considering re-mortgage options, we will review the best product that your current lender is offering and compare against the market. If you were to stay with your current lender, they may not request any additional documents to secure a new rate.
Katie’s top tip
If you’re self-employed please ensure your accountant is fully aware that your mortgage is due to expire or you are looking at moving house, you don’t want to give your accountant any unexpected surprises!
Here to help
If you are self-employed and your remortgage is coming up, we can help. To get in touch with our team, give us a call on 01782 617 600 or send us an email at info@signaturefs.com.
