Remortgaging after self build

[jack]

After putting it off for way too long, I'm finally looking into remortgaging from an interest-only mortgage (with offset) to a repayment mortgage.

 

We only need to borrow about 8-10% of the property value (although if no-one actually comes to value it, they'll be looking online at things like Zoopla etc, which shows the old bungalow with a value of maybe 55-60% of what the new house is likely worth).

 

There are a few potential wrinkles:

• I'm self-employed. I have 5 years of earning history, so I guess not really an issue other than the fact that my year-to-year, and even month-to-month, invoices and dividends are quite variable. 
• My wife is employed part-time, but also gets some money via a dividend paid to her as a director and part-time administrator of her parents' business. She's only been paid for the directorship since late last year, so she hasn't filed any returns, and has no evidence of dividend payment other than the money arriving in our account every month since then.
• One of our kids is at a private vocational school. His grandparents pay half of the school fees. I can show the amounts they've paid via bank statements, but there's nothing formal in place.
• The house is of non-standard construction (cellulose-filled timber frame) 

I was planning on just applying directly to whatever lender looked best via comparison sites, but does anyone think I might be better off going via a broker? If so, does anyone have any recommendations?

 

If it's better to apply directly, does anyone know of any particular lender that's relatively flexible about the points above?

 

Thanks. 

 

 

[Glenn]

Hello Jack

 

I'd always go with a broker, having been in the same self-employed position as yourself. Not such a big deal as it's been in the past. Especially with such a low percentage of property value.

 

I was happy with scott rochester of Trinity Financial (Scott Rochester <scott@trinityfinancialgroup.co.uk>) if he's still around

 

Regards

Glenn

[Roundtuit]

A broker is probably worth while.  Not all lenders ask the same questions, so someone who knows the market could save some pain.

[Blooda]

We have standard mortgage on our current house [offset with Scottish widows] , and a self build on the self build with Loughbourgh BS.  for the standard mortgage we used a broker, easier as he knew the market.  For the self build we went straight to the Loughborough  -  the Loughborough seem to have the business model, that you dont need to go through a broker and they would rather take the fees. They used to only offer the Self Build through one of the Brokers, but now [since early last year] offer it direct -  

[markocosic]

Self employed mortgages of 4x your PAYE+dividend income as declared on your SA302 (three lesser of the last two years) and less than 90% loan to value are high street territory. 

 

The broker just gets in the way - if this is the only complication - mangling the requests for info from the lender and delaying proceedings etc IME.

 

Also worth knowing that the high street lenders will also accept applications that aren't advertised on their websites. "Oh no, we can lend on one years accounts, you don't need two, it just get referred to the underwriters." 

 

Start with the best buys then call direct for initial advice if you have the time. You might learn more from this than a broker rusted chief up on self employment but not construction type and vice versa.

 

Pull you credit files now too. Experian, Equifax, TransUnion. You might think there's little to go wrong but when done fat fingered oaf mis keys the delivery vs invoice address for your phone like etc this causes no end of grief!