When you are coming to the end of a fixed rate deal, most homeowners like to take the chance to reassess their circumstances. They may want to move to another fixed rate product so they know what they are paying. Alternatively their circumstances may have changed and there is a need for a different type of product altogether. Approaching high street lenders direct will often mean you have to provide strict evidence of income. This can be difficult especially if you are self-employed. And staying with your existing lender – for ease, is likely to mean that you are missing out on a better rate or product elsewhere.
At 177 Mortgages we have developed great relationships with a wide range of lenders. So when it’s time to start looking for a new mortgage deal using a mortgage broker can help you overcome these difficulties. Take a look at how we recently helped a customer with their remortgage to an offset mortgage.
Client: A pharmacist who was employed by a company when they took out their previous fixed rate mortgage. They became self-employed and started as a sole trader in October 2020. After successfully managing the transition from employment to self-employment they converted to a limited company in April 2022.
Scenario: Their current fixed rate mortgage was coming to an end, and they wanted to find an offset mortgage. This was because of the savings that they held, as well as their tax arrangements. Their current lender was no longer competitive following the rate rises that happened during 2022. Approaching lenders directly had been unsuccessful due to the requirement that they had to provide two full years of accounts.
Challenge: Starting a new search for a fixed rate mortgage in November 2022, the customer had been self-employed for just two years. And the limited company that they had created had been trading for just six months. Most lenders require two full years of financial accounts before considering a remortgage application. The client had no financial accounts for the limited company.
Solution: After the client came to 177 Mortgages, one of our specialist team who are experts in managing applications for self-employed homeowners prepared the case. They discussed the case with the Business Development Manager with a leading lender. They agreed to consider the application and were happy to use an accountant’s reference for income proof. The accountant letter was used to prove their income as a sole trader and a projected income for the limited company. The lender was also able to offer the client an offset facility which they were looking for.
Outcome: Using our existing relationship with the lender we were able to secure the client a remortgage deal that met their requirements. Thanks to our tenacious approach and the innovative solution provided by the lender. Despite not having two full years of financial accounts for the limited company we made it possible for the client to remortgage.
Using 177 Mortgages to find your help you remortgage your property is fee free. If you’re simply looking for a new fixed rate or your circumstances have changed and you now have more bespoke requirements. Or you’re looking to borrow more money – get in touch with us today.