Re-mortgaing but now self-employed??

**vix84** · 17-08-2009, 07:09 PM

Hi,
I am about to put the house up for sale as we need more room for all the toys!!

My first year as a Childminder I was working 2 days a week as a Childminder and 3 as a Nanny, then this dropped to just 3 days as a Childminder for a while - so my income was a bit low.
Then the following year I was on maternity leave so again this was low, and this year I am finally full-time but only with 2 under 5's.

Anyway - will the mortgage brooker need 3 years of accounts or something to prove my income? And my accounts are quite basic - will that be ok or do they need something special?

**RedDragon** · 17-08-2009, 07:13 PM

I am with the Halifax and they just took my word for it that I was self employed and what my earnings were.

Good Luck.

**vix84** · 17-08-2009, 07:15 PM

Originally Posted by RedDragon

I am with the Halifax and they just took my word for it that I was self employed and what my earnings were.

Good Luck.

Oh right, wow lol!! How long ago was that?

**FizzysFriends** · 17-08-2009, 07:17 PM

If you don't have the requied amount of accounts you can self cert, only some mortgage products are available self cert so tell your broker straight away.

**nannymcflea** · 17-08-2009, 07:20 PM

We've just gone with the Halifax, both self employed but there were strings attatched and couldn't get such a good rate but these were the easiest (apparently) and some wouldn't go near us!

**janiefear** · 17-08-2009, 07:24 PM

We remortgaged about 3 years ago and I had to get a print out from Inland Revenue to show my earnings the previous year. The company took that as proof.

**vix84** · 17-08-2009, 07:31 PM

Originally Posted by janiefear

We remortgaged about 3 years ago and I had to get a print out from Inland Revenue to show my earnings the previous year. The company took that as proof.

That sounds easier - do you know who you rang, which department to get that and how long it took?

**Bazza** · 17-08-2009, 08:02 PM

Originally Posted by RedDragon

I am with the Halifax and they just took my word for it that I was self employed and what my earnings were.

Good Luck.

And thats why we are in a recession!

Most lenders will want to see at least 3 years of income an they should be able to advise what types if documents they need as proof, but it will vary from lender to lender. I did my last mortgage through a broker i found on fool.com and they were really good.

Here is the link in case you want to try them out: Mortgage broker

**Forum Widower** · 18-08-2009, 12:00 AM

I've worked in Mortgages for the best part of the last ten years and from recent experience i can tell you without a shadow of a doubt they will want to see 3 years accounts. The complexity of the accounts depends on the lender, ie: some lenders will only accept accounts from a chartered accountant.
Self Cert is not what it used to be and they are now so thin on the ground they are nearly impossible to obtain.

As much as it flies in the face of my job my advice would be NOT to go through a broker. I can tell you from my own experience that Banks and Building Societies have pretty much closed ranks since the beginning of the current economic downturn. It used to be that going to a broker was a good thing for two main reasons, most brokers are independent (like me) who can look at the entire market place for you and source the best product for your needs. That made your life a little easier in terms of time saving. The other reason was that because brokers are the largest source of business for the Banks and BS's they would give us special rates to pass on to our customers, not anymore. 18 months ago i could choose from about 20,000 mortgage products for our clients, now its about 2,000.

Lending has become very strict and as i say, Banks and BS's have made it very difficult for brokers to remain in Business and this is the reason why and what i suggest you do if you are looking for a mortgage. We have a client who was looking for a remortgage, we found her a great rate which she was happy with but by chance she went to her bank for something non-related and ended up being offered a mortgage on the spot at 0.5% less than we were able to do. What she was offered was not listed on any product listing, not even on the banks own website.

Go and speak to your bank or any bank, the best thing you can do is sit down with a bank mortgage broker, tell then you've been offered X by a broker (don't be unrealistic) and see what they come up with. My experience, not just with that one client but with many other clients, is if you can actually sit down with someone at your bank and explain your situation they will be inclined to help as they have the power to make on the spot decisions and approve things that may not otherwise be approved, not even with the help of an independent mortgage broker.

Hope this helps a little.

FW

**ZoeAlli** · 18-08-2009, 12:23 AM

I agree with the advice that forum widower has given you, as I have family in the financial world- they too have said that lending and borrowing, particularly mortgages is not like it used to be!
I hope you get sorted, with the right mortgage for you!!

**Louise_Oaktree** · 18-08-2009, 12:32 PM

I am following this thread with interest as we may be in a similar position in a few years time. Also we are on fixed rate so will be moving to a new product in 2 years time.

As far as I was aware re-mortgage with same lender is easier than changing lenders as you will have a reputation of being on time with repayments etc and it will also depend how much extra you want to borrow but I wouldn't be extending my mortgage in the current climate - especially being self employed

JMHO

**loocyloo** · 18-08-2009, 04:49 PM

we moved and remortgaged 3 yrs ago ... the bank we had had a mortgage with for 8 yrs, said it couldn't lend us what we wanted, and in actual fact, couldn't lend us, what they already had 8 yrs ago, that we were paying the mortgage on, depsite never having missed a payment or anything !!! as they only took into account my net income, that i would pay tax on ! ( i was employed when we took out the original mortgage )

since then, we have had a mortgage with halifax, and last year moved it to abbey. no problems. we did get a special deal with abbey, using a broker who is a family friend, and we couldn't find such a good deal anywhere else. ( i also went back to the original bank (who we hold several accounts with) and they still couldn't lend us anything near what we needed!

good luck

**Forum Widower** · 18-08-2009, 11:17 PM

Re-mortgaging with your current lender is usually the easier course of action as they are aware of your payment history however only if your circumstances remain unchanged. With changed circumstances you may face some resistance but as always it depends on how much you are trying to borrow and your LTV.

3 years ago, even 18 months ago mortgages were a doddle which is why the country is in such a shocking state now.

It is still worth speaking to your existing lender first as they all have preferential rates for existing customers. Do your homework and see what is being offered first. So many of them will offer you one rate, hoping you haven't looked at there offerings because the rate they initially offer will not be their best.

Also be careful on your loan to value. Many main stream lenders have applied higher than normal rates or high arrangement fees to their over 80% LTV products.

If you are selling and you have a portable product your lender may transfer your existing mortgage product to your new property. Be aware, if your product is not portable and you move house before your current rate expires you will be liable for an early repayment charge, which depending on the product and amount of your mortgage is likely to be in excess of £1,000.

I cannot stress enough, anything you have heard or people giving you info about the mortgage they got more than 1 year ago you can pretty much ignore. The face of mortgage lending in this country has changed dramatically in the last year, banks, building societies, specialist lenders, specialist mortgage arms of certain banks and thousands of brokers have gone out of business simply because of the constraints put in place by our financial institutions.

Look around yourself. Being in the business myself i always check out the offerings and mortgage portals that clients can use directly and Money Supermarket is by far the best. Take a look on there and see what rates/products fit your needs and circumstances, speak to your current lender to see where you stand with your existing product and what they will do considering your new circumstances. If they don't come up with anything for you, speak to your bank (if they are not your existing lender already) and if you have to start shopping about your three best bets currently in terms of your employment status are, Halifax, Abbey and Lloyds.

FW