Self Employed Remortgages – Remortgage With Confidence

There is no denying the fact that the UK mortgage market is in the doldrums - many lenders have cut back on products and distribution and some have even closed shop completely. If you are looking for a new mortgage you could be in for a tough time - especially if you are self employed. But what about self employed remortgages? Are they as difficult to get hold of as new self employed deals? What do you need to do to be sure of great self employed remortgages?

When it comes to the remortgaging market, things are considerably more cheery than the new mortgages market. Recently it was reported that there was a 43% rise in remortgaging in the first part of 2008* - this means there are still remortgage deals out there, including self employed remortgages. Lenders are unhappy lending to new customers, many have even closed their doors to new borrowers, but for existing borrowers, even those who cannot prove their income, there is a lot more confidence. Self employed remortgages lenders base their decisions on not only your credit rating, but also on their own information, which they obviously take as their most reliable data. So if you have had a mortgage with a lender before there is already trust there.

So be confident when it comes to take out self employed remortgages - but be ready to impress nevertheless. Lenders have taken a battering as a result of the credit crunch, so they will not hesitate in saying no, no matter if you are an existing customer. Get all your past finances in order and be ready to show you are a good borrower. Prove that you, as someone who is self employed, can afford to meet self employed remortgages repayments. And be sure that your credit rating is as good as it can be. Just because the lender has previous information on you, they will still use the credit rating as a means of creating a whole picture of you as a borrower.

And have a plan. A lender who is lending self employed remortgages will want to see that you recognise that when it comes to the self employed, anything can happen. Foresee all eventualities, and have a strong payback strategy. Show the lender that you have merit, for they will only give self employed mortgages to those self employed people who are a sure thing - they have taken too many loses to take on any more risky clients. Also, remember self employed remortgages are not as cheap as there were a few years ago, so show the lender you understand this and are ready for the extra costs.

Self employed remortgages are still great products for people who can handle them, and lenders are still there to lend. But since the credit crunch everyone has been reminded that the best self employed remortgages lenders, and the best borrowers are the sensible people who are ready for anything.

*Council of Mortgage Lenders, March 2008