Although many financial products are beginning to evolve to cater for those who work for themselves, remortgaging an existing property can still be a challenge for many self employed workers. It’s certainly not impossible to remortgage your home when you work for yourself, but there are added hoops that need to be jumped through.
If you’re looking to remortgage as a self employed person, read on to learn how to make the process that little bit more smooth sailing.
Get your finances in order
To prove you can afford the new mortgage, lenders will expect you to show at least 2-3 years of accounts. Often, these will need to have been signed off by a chartered accountant.
Alternatively, you may be expected to show 2-3 years’ tax returns. You’ll be assessed on net profits rather than turnover.
Boost your credit rating
Since you were approved for your existing mortgage, you may assume that your credit rating is irrelevant when remortgaging your home. However, lenders will still want to assess your credit-worthiness before agreeing to a remortgage deal, particularly if you’re self employed.
By boosting your credit rating and ensuring your finances are healthy, you can reduce the likelihood that your application will be rejected. Here are just a few ways you can do this:
- Avoid applying for any other credit until you’ve successfully remortgaged
- Ensure you repay all bills on time
- Close credit accounts you don’t use
- Register to vote at your current address
- Fix mistakes on your credit report by contacting the credit reference agency
Use a mortgage broker
Many lenders have extremely strict remortgage criteria and will reject applications at the first sign of a financial hurdle. If your application is rejected, your credit rating may be affected and this could have an adverse effect on future applications with other mortgage providers.
A
mortgage broker could help you improve your chances of being accepted the first time you apply. They’ll use their extensive knowledge of the remortgage market to help you identify the providers most likely to lend to you, while ruling out those with tough and inflexible criteria.
Here at TaylorMade Finance, we have extensive experience of the mortgage market and can help you remortgage your property with as little fuss as possible. We’ll find you an excellent deal while saving you time, money and stress in the process. To learn more, take a look at our
guide to remortgaging and
get in touch with our team.