Self Employed Remortgage

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Remortgage Guide for Self Employed 


Are you feeling squeezed by your current mortgage? As a self employed entrepreneur, life throws its unique financial curveballs. But here’s the good news: remortgaging can be your magic trick to turn those curves into savings. Think of it as a fresh start for your mortgage. It’s possible to unlock a better rate, change your existing term or even borrow more funds for home improvements or a new car.  


Is it Remortgage Time?


Being Self employed and running your own business you are probably already used to being organised. When it comes to remortgage time, the same rules apply. The general rule for most mortgage lenders is you can choose a new mortgage product 6 months before your current product ends. Hold on – don’t dive in headfirst. Remortgaging isn’t a one size fits all solution. It might not be the best choice to stay with your current lender.


Should I stay with my current lender when remortgaging?


This is a great question. It’s one that we mortgage professionals get asked all the time. 

 Here’s what you need to consider:


  • Is my lender offering me the best rate on the market?
  • Am I paying more fees than other lenders are charging?
  • Will my Self employed accounts even allow me to remortgage to another lender? 
  • Do I need to make any significant changes to my mortgage? For example, changing the mortgage term.
  • Do I need to borrow additional funds when remortgaging? 


As you can see. It’s more than a simple yes or no answer. There is a wide range of different aspects that need to be considered. It’s essential to research to make sure you’re making the best choice. Alternatively, you can contact a mortgage professional to compare your remortgage options and advise you on the best option. 


What type of mortgage should I choose?

Fixed rate 

Gives you stability so you know your mortgage payment for a set period. It can be an excellent option for the uncertainty of being Self employed. 

Discount Rate 

Gives you a discount on the lender’s standard variable rate, meaning it can change with market conditions for good or bad.  

Tracker rate

Gives you a rate that tracks a nominated rate, usually the Bank of England base rate. It can be a good option if you think rates are likely to come down, but it can also affect you if the rates move to the upside. 

Stick on the Standard variable rate (SVR)

This is the rate your mortgage moves onto in most cases after the initial fixed, discount or tracker period. This can be advantageous if you plan to sell your property, as there usually are no repayment charges to pay if you want to clear the mortgage off. If you plan to stay put, staying on the SVR will cost you more money than the other alternatives. 


This can be a great option if you have a large amount of savings. This mortgage type is where you have a savings account linked to your mortgage. For example, if you take a mortgage for £100,000 but put £20,000 in the savings account linked to the mortgage, you will only pay interest on the £80,000 as the £20,000 in the savings account reduces your mortgage amount. 


There are a lot of different options to consider. It is best to research what is best for your particular circumstances or speak to a mortgage advisor to help you assess your options.  


Self employed and borrowing extra at remortgage time.

Clearing off existing debts:

If you’re feeling swamped by multiple debts, it is possible to consolidate them into your mortgage remortgage. Please think carefully before you decide to do this, as you will be spreading the debts over a more extended period, meaning you could end up paying back more overall. Crunch the numbers and consult a good mortgage advisor; sometimes, tackling debts individually is the smarter play.

Home improvements: 

This can be a smart move if you plan on borrowing additional funds for some home improvements. It’s possible to add value to your property by adding more space from an extension or loft conversion, which means when you next come around to remortgage, your property may be worth more as it now has more space from the improvements you made.

Purchase a second residential property: 

If you plan on buying another property, it might be possible to release funds from your existing property to use towards the purchase of the new property. It’s essential to check if you can afford the costs of running two properties; most mortgage lenders will consider that you are paying two lots of bills for affordability. It’s also worth exploring the associated costs of purchasing a second property and the tax implications if you plan on selling in the future.

Purchasing Buy to let: 

It is possible to release funds from your residential to purchase a buy to let. It’s essential to fully understand the requirements of being a landlord. It is also important to fully understand the tax implications of purchasing an additional property. It might be worth speaking to an accountant who can help advise you on the best way to structure your new purchase. 

Buy a car: 

Raising funds from a remortgage to purchase a vehicle is possible. It needs to be considered if this is the best option, as you are taking the additional funds over a much longer time frame when comparing it to a personal loan or hire purchase agreement. It’s best to look at all options and compare the differences between them.  

Business purposes:

Remortgaging to raise capital for business purposes is possible, but only some lenders will allow this. It is essential to research what lender will allow this or contact a mortgage professional who can help advise you about what lender to approach


Self employed Remortgage Tips :

  • Fees & Charges: Don’t let early repayment charges or arrangement fees on your new mortgage turn your savings sour. Factor them into your calculations to ensure remortgaging is genuinely beneficial.
  • Shop Around: Don’t settle for the first offer! Compare deals from different lenders to find the one that works for you with the best rates and terms. 
  • Mortgage Advisor Magic: Feeling lost in the remortgage maze? A mortgage adviser will do the work for you, so it might be best to contact one to save yourself time. They will guide you through the process and help you make informed decisions.

Remember: Remortgaging is a powerful tool, but use it wisely. Please do your research, seek expert advice, and ensure it fits your financial goals like a bespoke suit. With the right moves, you can unlock incredible savings, free up cash flow, and give your financial future a rockin’ remix.

Understand Your Credit File

When greeting ready to apply for a mortgage it’s essential you understand your credit history.


We recommend Check My File who offer a 30 day free trial (usually £14.99 per month, you can cancel at anytime) 


The Check My File Report provides you with a summary from three different credit reference agencies (Experian, Equifax & TransUnion).

Mortgage lenders use different credit reference agencies and you are able to see what the lender see prior to making any applications.


Self employed Remortgage

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