Self Employed Remortgages
Self Employed Remortgages - A Guide to Self Cert Remortgaging
Self employed remortgages do exactly what they say on the label. They are ideal for those that need to remortgage and are self employed, have become self employed since buying their home or whose working circumstances have changed in another way.
The term self employed remortgages can actually be slightly misleading, as many more people than just the self employed can benefit and are suitable for this type of deal than might realise it. Essentially, anyone who finds it difficult to verify what their annual salary is should consider self employed remortgages as a valid option, as it will allow them to declare their income without having to independently prove it.
Am I eligible?
The types of careers that are eligible for self employed remortgages range widely and often include those involved in creative fields, such as writers or session musicians. But these are just two examples of many more. While one self employed person may run their own business making pottery, another could be self employed but working within another business, such as a hairdresser or beautician.
Added to this, self employed remortgages are also an essential option for people who hold down more than one job or whose income varies month to month, such as in the tourism industry with its peak and low seasons. Those who receive regular, but undetermined bonuses or commission alongside their regular salary are also prime candidates for self employed remortgages.
What do I need to consider if i'm thinking of applying?
So what do you need to consider when applying for self employed remortgages? One aspect that certainly needs to be noted is that many lenders will not commonly lend above 75 per cent of the property value. If you have built up equity in your property before looking at self employed remortgages, this may not be such an issue and will not hinder your search for the right deal. For those with less of a deposit, there are lenders out there with self employed remortgages designed specifically for that situation. However, inevitably, the smaller the deposit, the less choice people have and the higher the interest rate may be.
The fixed versus tracker debate is one that everyone also needs to have. If you have a steady enough income month to month, a tracker rate could give you the benefit of a reduction in interest rates. Of course, for greater security, a fixed is the best option to know exactly what your mortgage repayments will be. This can all be helped by finding flexible self employed remortgages that allows over and underpayments and payment holidays.
Get advice from a broker
If you're new to the world of self employed remortgages, having joined the ranks of the self employed since buying your house or simply thinking it may offer you better options, then getting advice from a mortgage broker is invaluable. They can explain all the details of what can be a complex issue and will have knowledge of what lenders may be most suitable for you. As self employed remortgages are a specialist lending area, many lenders only offer their mortgages through brokers, so by getting advice, you will also widen the scope for finding the most suitable and competitive mortgage for you.
