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Original poster

Remortgaging as a contractor

10 replies

JunoStarship · 13/02/2021 11:47

Our current fixed rate expires in a couple of months and we'd like to remortgage and shorten the term and/or change to a product that would allow us to make more overpayments.

I'm currently working as a contractor with my own limited company but have only been doing this for 18 months or so don't have much accounting history. My husband earns around £25,000.

Outstanding mortgage is around 60,000. Are we likely to have to go down a specialist mortgage route? I'm currently taking around £15,000 in salary and the same again in dividends.

OP posts:

TrendingToday · 14/02/2021 16:40

£25,000 is enough for a £60,000 mortgage and so your salary won't be needed

You won't be on the mortgage but you need to remain joint owner and on the deeds.

OnTheBenchOfDoom · 14/02/2021 18:00

I think we had this over a decade ago and spoke to our usual broker London and Country (L&C) who are recommended still by moneysavingexpert. They do not charge any fees and were really helpful.

I think we stayed with the same mortgage provider at the time as they didn't require any new details from us as Dh only had 2 years worth of accounts at the time. L&C arranged it for us.

I would also like to point out that Dh and I have had a joint mortgage for 20 years, 16 of which I have been a SAHM and have always been on the mortgage and deeds. I am down as zero income.

Original poster

JunoStarship · 15/02/2021 19:25

You won't be on the mortgage but you need to remain joint owner and on the deeds

I didn't think this was possible?

I'd prefer to have some of my salary count towards the mortgage as we want to look to shorten the term and I'm not sure about whether that would pass the affordability checks on a single salary.

I think we stayed with the same mortgage provider at the time as they didn't require any new details from us as Dh only had 2 years worth of accounts at the time

I did wonder if staying with the same provider might be an easier option.

OP posts:

Outnumbered99 · 17/02/2021 14:04

Speak to a broker- it won't be a problem. Its not just the one mentioned upthread that doesn't charge fees- many offer the same service!

No problem at all to not count your income for applying for the mortgage and you can simply overpay to shorten the term

Kazzyhoward · 17/02/2021 15:30

Any good mortgage broker can sort this no problem as they're used to dealing with contractors/self employed etc.

It's when you try to go direct with the High Street banks/lenders that you tend to hit snags as their "advisers" are usually pretty ill informed re limited companies etc and just don't understand the legal difference between the company and the person, so usually ends up with a "computer says no" answer.

Original poster

JunoStarship · 17/02/2021 15:56

No problem at all to not count your income for applying for the mortgage and you can simply overpay to shorten the term

I want to shorten the term as we're close to hitting our overpayment limit this year and as it's percentage based it's going to be even more limited in future years. Now there is a good buffer in the company I'll be taking home a considerably higher salary going forward but that's not reflected in current accounts.

I was hoping to avoid a broker having had negative experiences in the past (recommending products with fees where the slightly better interest rate doesn't offset the product fee etc.) but it does sound like high street lenders might be more wary so helps to have the insider knowledge.

It's difficult to know what to do, I'm likely to have enough capital to pay the entire mortgage off by the end of the year but with interest rates what they are it's not necessarily the best course of action.

OP posts:

Jarstastic · 18/02/2021 00:15

If you stay with the same provider with the same length you won’t have to go through any checks.

blueshoes · 18/02/2021 00:20

Get a tracker rate, ideally with the same bank. You should be able to do any amount of overpayments during the life of the mortgage.

There is a slight risk rates may go up but I really don't think so in this covid climate.

MaryBerrysChutney · 18/02/2021 06:28

OP, did you contact CMME ? They can guide you.

Outnumbered99 · 18/02/2021 16:35

I'm truly sorry you have had negative experiences in the past, please don't let that put you off brokers (although it would be understandable). go whole of market, independent and not fee charging.

Or failing all that go for a product with no ERC and you can pay it off as quick as you like.

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