In partnership with the Financial Services National College (FSNC).
A resilient slice of the market, remortgaging your home can be a way of releasing equity, changing the terms of your mortgage or an opportunity to switch providers.
Is remortgaging a complicated process if you’re self-employed?
The way lenders treat affordability for self-employed customers varies considerably between providers, with some having very rigid policies while others are more open to understanding differing circumstances. However, if you’re conscientious and prepared when evidencing your finances to a lender, there is absolutely no reason why remortgaging couldn’t work for you.
Being able to prove your income is of the utmost importance. The common approach is to show at least two years’ worth of business accounts – three would be preferable. Most lenders will require the paperwork to be signed off by a chartered or certified accountant. If you can’t demonstrate any business accounts, then at least two years’ tax returns are the next best option and you will be assessed on profits, rather than turnover. If you are a contractor, you will need to provide your current contract and employment history.
At Newbury Building Society, we start by analysing the bigger picture of your circumstances. We do this by asking for evidence of your employment history, proof of related experience in the stated profession, and confirmation income is at a similar level to that of what was being earned previously. We would also consider one year’s accounts and in some cases, less than that.
When it comes to remortgaging, we believe in openness and flexibility to understand your individual circumstances. We do not credit score, all our mortgages are individually underwritten, and we consider unusual properties and circumstances. So, to answer the question above: with Newbury Building Society, remortgaging as a self-employed person isn’t complicated at all.
We can call you back to arrange an appointment. Our mortgage appointments are available by video call or by phone.
*all figures and data correct as of March 2021
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGANST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.