Self-Employed Remortgages – Pros & Cons
When you’re self employed, getting any kind of loan can be a sticky situation. Getting a remortgage loan for your home may send chills down your spine, but you can find lenders who are willing to help. You simply need to do your part to make the process go as smoothly as possible when getting a self employed remortgage.
Whether you’re self-employed or work for a company, remortgaging is a great way to free up your cash flow every month by getting a lower payment or to consolidate some of your debt and to pay off some other bills. The challenge in securing a remortgage for the self-employed is that income may not be stable. Lenders like to see guaranteed employment income that’s on a regular basis. It’ll be harder if you’re self-employed to get a remortgage, but not hopeless.
Applying for a home loan remortgage is just like applying for that first mortgage. Preparation will be vital, so take the time to line up all your ducks in a row. You’ll of course need proof of how much income you are generating monthly or annually. Some remortgage lenders may require you show two years of audited accounts. The longer you’ve been working in an industry, the better it will look on your remortgage application.
You should also have on hand your banking statements, record of past mortgage payments.
Of course you should take a look at your credit report to make sure it shows that you have a good score. Self-employed or not, a good credit score is a must in attaining a remortgage or any kind of loan at a good interest rate.
Once you have all your paper work in hand, start with your current lender. If they are not able to remortgage you because you’re self-employed, they can probably guide you to a lender who can further assist you. How much can you get on a remortgage? All depends on how much income you make and the value of your property.
If all of this sounds like too much wheeling and dealing for your taste, hire an accountant. He or she can help you organize all the paperwork you need and help you to get the right forms so that you present the remortgage lender with a professional, clear picture of your finances.
Even if you have slightly less than perfect credit, as a self-employed borrower, you can still find lenders who can you the help you need to get back on your feet.
