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Re-mortgaging when being self employed and employed

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02-12-2016, 11:28   #1
monkeygirl
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Hi All

Looking for some advice from anyone who has experienced similar situations. I started my own business about three years ago. Being "sensible" I did so whilst still being employed. As the business has grown I have reduced the amount that I am employed and increased the amount of self employed income.

I am now in a situation where I want to borrow more on my mortgage for home improvements. However, after talking to several mortgage brokers and my current mortgage providor I'm told that mortgage advisors will only count my self employed income (which is more than the employed income) and do affordability based on that. They won't take into account my permanent employment which therefore makes it looks like I earn a lot less. I find this an incredible situation and wondered if anyone had experienced similar and had any advise? The last mortgage providor i approached said my best bet would be to wait to the end of next tax year when my self employed income will be higher still so I won't need to include the employed income. My other concern is that if I am sorting a remortgage out I would rather do it sooner rather than later and get a good interest rate before the rates start to go up.

Many thanks in advance
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02-12-2016, 12:24   #2
Bilge
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Talk to your bank as a first step and see what their policy is. You need 2 tax years' worth of self-employment before they will look at those figures, which it sounds like you've got. Then I would have thought any lender would look at what other income you have too.
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02-12-2016, 13:22   #3
Danny_Boy
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Quote:
Originally Posted by monkeygirl View Post
Hi All

Looking for some advice from anyone who has experienced similar situations. I started my own business about three years ago. Being "sensible" I did so whilst still being employed. As the business has grown I have reduced the amount that I am employed and increased the amount of self employed income.

I am now in a situation where I want to borrow more on my mortgage for home improvements. However, after talking to several mortgage brokers and my current mortgage providor I'm told that mortgage advisors will only count my self employed income (which is more than the employed income) and do affordability based on that. They won't take into account my permanent employment which therefore makes it looks like I earn a lot less. I find this an incredible situation and wondered if anyone had experienced similar and had any advise? The last mortgage providor i approached said my best bet would be to wait to the end of next tax year when my self employed income will be higher still so I won't need to include the employed income. My other concern is that if I am sorting a remortgage out I would rather do it sooner rather than later and get a good interest rate before the rates start to go up.

Many thanks in advance
Hi Monkeygirl, what brokers / lenders have you spoken too? I have been in the industry nearly ten years now and know of at least one High Street bank that will use 100% of both your employed and self employed income. Drop me a PM if you want to discuss further
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