Remortgaging can be a smart financial move, whether you’re looking for a better mortgage deal, lower monthly repayments, or to release equity from your home. But if you’re a self-employed person, the process can feel more complex than for salaried employees.
With different income structures, tax considerations, and lender requirements, securing a self-employed remortgage requires careful planning. The good news? Many mortgage lenders offer competitive deals for self-employed people, as long as you can demonstrate income and financial stability.
At The Mortgage Pod, we specialise in helping self-employed individuals navigate the remortgaging process with ease. Here’s everything you need to know about getting a remortgage when you’re self-employed.
How Does Remortgaging Work for Self-Employed Borrowers?
A self-employed remortgage works similarly to any other remortgage, you replace your current mortgage deal with a new one, either with the same lender or a different provider. This could be to:
- Secure a lower interest rate and reduce mortgage repayments
- Switch from a fixed rate mortgage to a variable rate mortgage (or vice versa)
- Avoid moving onto the lender’s standard variable rate (SVR) once your fixed term ends
- Access better terms if your financial situation has improved
- Release equity for home improvements, investments, or debt consolidation
The main difference for a self-employed individual is that lenders require more documentation to assess affordability.
Can You Remortgage If You’re Newly Self-Employed?
Yes, but it can be more challenging. Most mortgage lenders prefer at least two to three years’ worth of accounts to assess income stability. If you’re newly self-employed, some lenders may accept one year of accounts, but your options will be more limited.
If you’ve recently transitioned from salaried employment to self-employment, lenders may also look at your previous income and industry experience. Speaking to a mortgage broker can help you find lenders that work with newly self-employed applicants.
What Do Lenders Look for When Assessing a Self-Employed Remortgage Application?
When reviewing your mortgage application, lenders assess:
Income & Financial Stability
- Most lenders require two to three years’ SA302 tax calculations and tax year overviews (from HMRC)
- If you’re a sole trader, lenders will assess your net profit
- If you run a limited company, lenders may consider salary and dividends, or sometimes retained profits
Debt-to-Income Ratio
- High debts can affect monthly repayments and affordability
- Clearing outstanding debts before applying can improve your chances
Credit Report & Credit Score
- A good credit score is key to securing the best mortgage deal
- Missed payments, defaults, or high credit usage can make approval difficult
Bank Statements & Financial Records
- Lenders will request three to six months’ personal and business bank statements to assess cash flow
- If you keep business and personal finances separate, this can strengthen your case
Current Mortgage Deal
- Lenders will check if you’re still in a fixed term and whether early repayment charges apply
- If your deal is ending, now is the time to get a self-employed remortgage to avoid higher rates
What Mortgage Options Are Available for Self-Employed People?
Self-employed individuals can access the same type of mortgage deals as employed applicants, including:
- Fixed rate mortgage – Keeps monthly repayments lower by locking in a rate for 2, 5, or 10 years.
- Variable rate mortgage – Monthly payments fluctuate based on market conditions.
- Offset mortgages – Links savings to reduce interest payments.
- Flexible mortgages – Allows overpayments or payment holidays.
If you’re looking for the best mortgage deal, working with a mortgage broker can help you compare options and access most lenders, including those that specialise in self-employed remortgages.
Steps to Improve Your Chances of Getting a Self-Employed Remortgage
If you’re self-employed and planning to remortgage, follow these steps to increase approval chances:
1. Get Your Financial Documents in Order
Ensure your tax calculations, business accounts, and bank statements are up to date before applying.
2. Work With a Mortgage Broker
A mortgage broker like The Mortgage Pod can connect you with lenders offering self-employed mortgage deals.
3. Build a Strong Credit History
Check your credit report, clear debts, and avoid new credit applications before applying.
4. Have a Healthy Deposit or Equity
A larger deposit or home equity improves your chances of securing a better mortgage deal.
5. Avoid the Lender’s Standard Variable Rate
If your current mortgage deal is ending, remortgaging before moving to a lender’s standard variable rate can save money.
Get Expert Self-Employed Remortgage Advice
Being self-employed doesn’t mean you have to settle for high interest rates or limited options. With the right preparation and guidance, you can secure a great self-employed mortgage that fits your financial situation.
At The Mortgage Pod, we specialise in helping self-employed individuals find the best mortgage deal, whether you’re looking to get a self-employed remortgage, switch from a fixed rate mortgage, or avoid moving onto a lender’s standard variable rate.
👉 Get in touch today for a free consultation with our expert mortgage brokers!
Frequently Asked Questions about self employed remortgage
Can I remortgage with just one year of self-employment?
Yes, but your lender options will be more limited. Some specialist mortgage lenders accept newly self-employed applicants with only one year of accounts.
Do I need a perfect credit score to remortgage when self-employed?
No, but a good credit score helps secure better rates. Lenders will check your credit report to assess risk.
Can I remortgage with the same lender if I’m self-employed?
Yes, staying with the same lender can sometimes be easier, this is known as a product transfer, but it’s worth comparing the best mortgage deals available.
How do self-employed mortgage rates compare to regular mortgages?
If you can demonstrate stable income and a good credit score, you can access the same mortgage rates as employed applicants.
How long does a self-employed remortgage take?
It typically takes 4-8 weeks, depending on the lender and how quickly you provide necessary documents.
