Self Employed Remortgage
Don’t let being self-employed hold you back from a great remortgaging deal
- Remortgages from £50,000 to £10,000,000
- Interest Rates From 0.84% with no up front fees
- Access to Exclusive Offers
- Save hundreds or raise extra funds
Being self-employed offers plenty of benefits, including flexibility, building something for yourself, and working in your PJs. Let’s be honest; there aren’t many drawbacks to being self-employed – except for your mortgage options.
If you’re self-employed, you probably know how difficult it is to find the right mortgage – with many providers preferring the stability of full-time employment.
While mainstream lenders are notoriously tricky, plenty of specialist providers will happily consider offering a remortgage deal to self-employed applicants.
At Believe Money, we specialise in helping our clients find the right borrowing solution – whatever their needs are.
With a dedicated team and a network of lenders, we’ll turn the headache of remortgaging your property into a stress-free experience.
Is it possible to get a self-employed mortgage?
First things first, yes, it is possible to remortgage your property when you’re self-employed. Unfortunately, lenders can sometimes look down on people without stable employment, because they pose more of a threat.
Before 2014, people could use self-certification mortgages, but the government stopped this because people frequently borrowed more than they could afford.
Today, every self-employed individual must apply for a mortgage, like other applicants.
People in full-time employment can prove they have a contract and stable income, but self-employed people cannot offer this security to mortgage lenders.
It doesn’t mean you’ll never be able to remortgage your property – but you won’t have access to as many lenders.
Why remortgage if you’re self-employed?
Self-employed mortgages can often come with strict terms, and you might find it’s best to look into switching your current deal. Here are some reasons why remortgaging could be a good idea.
Money is one of the biggest reasons people remortgage their properties. If you’re on a fixed-rate deal, which is coming to an end, you could face a significant increase in what you pay each month.
By taking out another mortgage, you might get another fixed-rate deal or will be able to reduce your monthly payments.
Get Cash Out
Another reason to remortgage a property is to get cash out. If you have built up equity in your home, you can release it to raise money.
For example, you could use the cash for home improvements, debt consolidation, or investing in another property.
Shorten the Loan Term
If your current mortgage lender has strict repayment terms, you won’t be able to pay off your mortgage quickly. Switching to a new mortgage deal will allow you to avoid early repayment fees and have more flexibility with your payment schedule.
Get Better Customer Service
If you are unhappy with the customer service you are receiving from your current lender, refinancing with another lender may be a good option.
When you refinance, you can shop around and find a lender that offers the level of customer service you’re looking for.
What types of mortgages are available for self-employed people?
A self-employed mortgage applicant is someone who owns at least 20% of a business that makes up their primary income. For example, a sole trader, contractor and company director fall under the self-employed criteria.
However, lenders will have varying criteria for each category, so knowing where you fit in and what you might have to do is essential.
Sole traders are typically called contractors or freelancers and work for themselves, providing services to others. Mortgage providers usually require an SA032 form and a self-assessment for taxes, which an accountant undersigns.
If you’re a self-employed person with business partners, a lender will need to see proof of how much equity you have in the company and your share of the yearly profits.
Limited company directors
Registered limited company directors are responsible for allocating a salary for themselves and allocating dividend payments. Lenders will need to see your self-employed income and get an idea of the yearly average.
Getting a self-employed remortgage deal
Compared to 10 years ago, lenders have much stricter criteria, so finding a provider is no longer as easy. However, it’s the same situation for everyone – with the percentage of homeowners falling from 73.3% in 2007 to just 65.2% in 2018 (Statista).
Trying to jump through hoops and find a mortgage lender can seem like a lot of hassle, but getting help from a professional advice service can make the process easier.
Believe Money is a specialist mortgage broker company that supports people who might not get a borrowing solution from mainstream lenders.
Our professional brokers know how to evaluate each applicant based on individual circumstances and can approach providers on your behalf.
Here’s the process for securing a new mortgage and how we can help you through it.
Checking your current mortgage deal
Before even considering getting us involved, you should check whether you’re eligible to remortgage. Make a note of your monthly payments and current interest rates so you’ll know whether you’ll be getting a better deal when you apply.
Most people start looking around three months before their current mortgage deal expires, which allows plenty of time to research providers.
Book a free consultation with a mortgage broker
At Believe Money, we have one goal; find financial solutions for each client. Our dedicated team will arrange a free consultation, where you can discuss your future requirements and assess your eligibility for remortgaging.
We’ll also reveal how we can help you and offer total transparency for each client. You’ll never have to worry about us leading you on, because our job is to advise and support – not sell.
We dive into our database of mortgage lenders
Our mortgage brokers have relationships with specialist lenders, ensuring you can secure a new mortgage. While mainstream providers use tick boxes to assess eligibility, specialist mortgage lenders evaluate each case individually.
As long as you have a good track record with your existing lender and can prove you’ll make your monthly mortgage repayments on time, plenty of options should be available.
Full credit score analysis
When you first contact us, we’ll ask permission to do a soft credit check, which provides an overview of your credit history. However, mortgage lenders will need to perform a hard check, which evaluates your eligibility in depth.
Missed repayments, lots of credit card debt and other financial issues can impact your credit rating. While a poor credit record won’t immediately rule you out of securing a mortgage deal, a good credit score gives you more options.
If you’re worried about your credit report, speaking to a mortgage advisor can help you determine what you need to do to improve your mortgage eligibility.
The application process
When you find a remortgaging solution, you’ll fill out an application form and wait for the provider’s decision. Our brokers will be behind you the entire time, so you don’t need to worry about gathering information to support your application.
If everything goes well, you’ll receive a new offer and can enjoy your financial freedom.
Book a free consultation with Believe Money
If staying in the same mortgage deal will impact you financially, remortgaging is definitely worth considering. Please take a look at our frequently asked questions or contact us for a free, zero-obligation consultation.
A broker will talk you through the process and discuss your eligibility.
How much can I remortgage for?
Your loan amount depends on your property’s loan-to-value (LTV) ratio. For example, most people remortgage for the amount currently outstanding on their home – so if the property value is £200,000 and the mortgage is £130,000, you could borrow up to that amount.
However, it’s also possible – but not easy – to remortgage for a higher amount, although this depends on a successful remortgage application.
How much do self-employed mortgage applications cost?
Lenders usually have fees associated with the mortgage, and brokers do too. However, Believe Money doesn’t charge any upfront fees, and we’ll add the small arrangement charges to your mortgage.
What if I'm newly self-employed?
You can remortgage your property if you’re self-employed, but your mortgage provider will want to see bank statements, and most also specify that you must be self-employed for a year before applying.
The rates you received when you were a full-time employee might change, too, as self-employed borrowers come with more risks.
Can I remortgage without proving my income?
It’s very unlikely, as most lenders want to see that you can make the repayments. However, if you’re newly self-employed and have yet to reach the year mark, our brokers will try to find you the right deal – but most people wait until they can prove their income.
Is there any reason why I shouldn't remortgage?
Finding a new provider could increase your monthly repayments if you’re already getting excellent mortgage rates. The remortgage process can be time-consuming, and if you’re not going to get better terms, it’s best to keep your current provider.
Can we get a joint mortgage if one of us is self-employed?
Yes, many self-employed people find a good mortgage deal, so one – or even two people – that aren’t in full-time employment can still fill out an application. However, the provider will want to get an idea of your future income and personal circumstances.
How It works
Simple, easy application
We search a panel of lenders to find the right deal for you
Our bespoke technology and skilled advisors support you all the way
The money lands in your bank
account – usually within two weeks
Believe is powered by Clicktech
We want you to get your quote quickly and start your loan journey as soon as you’re ready. So we’ve developed a powerful technology platform, called Clicktech, that makes the process fast and efficient with you in control.
Following a chat with one of our friendly advisors, we link you to our simple online portal where you can enter the brief information we need. We then search our panel of over 800 lenders and deliver the most competitive quotes quickly and easily, in moments.
And once you’ve made your choice, Clicktech keeps things moving, helping you get your money in as few as ten days.
We compare mortgages from our panel of the UK’s top lenders to get you the best deal.
Mon – Thursday 9am – 7:00pm
Friday 9am – 3pm
Call from a mobile or Landline: