A self-employed remortgage can be a great way to save money on your monthly mortgage payments. It's also a cheap source of funds for home improvements, debt consolidation, and many other uses.
This comprehensive guide aims to provide answers to your most common questions about self-employed remortgages, so you can weigh up the pros and cons, and make an informed decision.
- Self employed remortgages: the basics
- Can I remortgage with my existing lender?
- The pros and cons of product transfers
- Are there any pitfalls to be aware of when remortgaging?
- Fixed vs variable rate remortgages
- How much can a self-employed person borrow?
- What's the maximum LTV for a self-employed remortgage?
- What can I use additional borrowing for?
- Can I get a self-employed remortgage with bad credit?
- How long will it take to remortgage my property?
- Getting a self employed remortgage quote
Self-employed remortgages: the basics
A remortgage is simply a mortgage deal taken out with a new lender to pay off your existing one.
You can remortgage any property you own, provided you have sufficient equity: the percentage of the property that you own outright.
For example, if your home is worth £300,000 and your current mortgage balance is £240,000, your equity in the property is 20 percent. It's possible to remortgage on an interest-only basis, though you'll likely need 25-50 per cent equity.
And regardless of whether you're a limited company director, contractor, partner or sole trader, you'll need to meet the lender's self-employed income criteria.
When Should I Start Looking For A Remortgage Deal?
Most people look to remortgage a few months before the end of their current fixed, discount or tracker rate period. You may hear this described as the Concessionary Period.
You can, of course, source the deal in advance, and have it takeover from your existing deal at the end of the concessionary period, before the lender's Standard Variable Rate (SVR) kicks in.
Can I remortgage with my existing lender?
Yes. Switching to a new mortgage product with your existing lender is called a Product Transfer. You'll need to carefully weigh up whether you're better off staying put by using a Product Transfer, or remortgaging elsewhere.