In 2017 the number of people in the UK who are registered as self-employed continued to rise to a staggering 4.8 million – accounting for over 15% of the UK work force.
With a number of complexities involved in first obtaining a mortgage if you are self-employed or working as a contractor, many people have found that getting a remortgage can be even more challenging, as lenders continue to focus harder on affordability. With pre-Brexit uncertainty still unsettling most corners of the finance industry added into the mix, any changes in your contractual terms and financial forecasts can make for a navigational minefield when your mortgage comes up for renewal.
So, what do I need to take into consideration?
In the vast majority of cases, lenders will generally require at least 2 years of income proof from accounts or from HMRC. This will give them an indication of the affordability of the products they can offer. We have created our own guide on how to get these forms which you can download here.
In addition to the above, if you are a contract worker the terms of your contract and work history will also be taken into account.
For people who have recently become self-employed or ventured into contract working and are looking to remortgage, fulfilling most of the above criteria may not be possible. The best approach in this situation is to make contact with us and we will be able to advise you dependant on your very individual circumstances, taking into account any unique personal scenarios; be they a second applicant, additional savings, property capital etc.
How much could I potentially borrow?
This is the hardest question to answer and will be based completely upon your individual circumstances. To find out how much your individual circumstances allow, give us a call and we can provide you with a more detailed answer.
Are there less options available for me as a self-employed or contract worker?
Though self-employed and contractor mortgages are generally seen as a more niche area of the mortgage market, as well as the standard products advertised on the high street, there are a number of specialist lenders who specifically focus on products for self-employed and contract workers. As a brokerage with whole of market access we can tap into these where many others cannot. Even when looking at your own bank and/or mortgage provider, we can often source products not available to their regular customer base.
Best of all, unlike the majority of the mortgage and remortgage market for contractors and self-employed people, we can source a bespoke solution to your individual situation completely fee free. We will never charge you for using our services for the lifetime of our relationship with you.
All sound familiar?
Looking to remortgage, or indeed find your first mortgage as a self-employed worker or contractor? Call us today or email me to let me know when is a good time to contact you. We appreciate your time is precious, so let us do all the hard work.
Mortgage and Protection Adviser