How easy is it to remortgage when your job status has changed?
How easy is it to remortgage your house if your financials have changed? While it can be tricker, it’s not impossible to find a deal. Here’s how.
A mortgage isn’t a set-it-and-forget-it piece of life admin. When your deal expires, you may want to remortgage to a better deal, which could be in 2, 5, or 10 years time. So, when that rolls around, you may find that your financial, career, or job situation has changed. What does that mean for your remortgage? And how easy is it to remortgage if things look differently for you now?
How easy is it to remortgage?
Depending on your situation, remortgaging is pretty straightforward. Around six months before your mortgage ends, you can start to look for a new deal so you can seamlessly switch over without falling onto your lender’s standard variable rate (SVR).
If you use a mortgage broker, they’ll help in searching for deals, submit the application, and switch over to the new deal. Remortgaging usually takes between four to six weeks, although a product transfer (staying with the same lender) can be quicker, usually around two weeks.
If you get a new mortgage deal with a different lender, you’ll need to provide more financial documents than if you were to stay with the same lender and simply do a product transfer. It’s also a good idea to check your credit score and review your credit history, as the lenders will be checking this out too.
Is it easy to remortgage if you’re now self-employed or freelancing?
Moving from a traditional PAYE role into being self-employed or freelancing means you’ll need to prove your income in a different way. Instead of simply providing your recent payslips, you’ll need to show your earnings from audited accounts (which means full details of all your income and outgoings), or your last SA302 forms.
Most lenders will want to see one year of accounts, while others require at least three years’ worth. If it’s a relatively new gig and you don’t have enough years of accounts to prove your affordability, you may need to prove your workflow instead. This could be proving you have upcoming contracts or retainer clients.
If you can’t quite prove your affordability, you could consider whether your spouse could take the lead on the mortgage, if they have a salaried, permanent role.
Does maternity leave affect remortgage?
The reality is that your mortgage is directly tied to how much you earn. On maternity leave, it’s likely that your household earnings will dip, particularly if you only receive statutory maternity pay.
First of all, be upfront with your lender or mortgage advisor, as they likely won’t ask directly if you’re on maternity leave or will be soon. However, they may ask you about any changes in your situation or upcoming plans, which maternity leave falls into.
In this situation, aim to gather proof of your previous income, proof that you’re receiving maternity pay from the same employer, and a letter from your employer confirming your intended date to return to work (along with the salary). Many lenders will consider this sufficient proof that you’ll return to the same salary, and that the drop in income is temporary.
If you’d rather wait until you’re back in employment before remortgaging, you will likely drop onto the lender’s SVR (standard variable rate). This could mean you’re paying more than you were before, but you can remortgage once you’re ready and have a regular wage coming in.
How easy is it to remortgage if you’re on a fixed-term contract?
If you’ve taken a role that’s a fixed-term contract - which often has an end date - many lenders will ask for reassurances. Some will class you as self-employed dealing with multiple contracts, or you may be considered employed with a fixed-term contract with a specific employer, where you work for six or 12 months.
As a self-employed applicant (see above), lenders will ask for one or two years worth of tax returns, such as self-assessments or tax calculations from HMRC.
If you’re a fixed-term contractor with one employer, most lenders will ask for payslips and a copy of your contract. Here, lenders are looking to understand how long it’s for, the pay, and what type of work it is. If you can prove that the contract has been renewed in the past - even better.
Key takeaways:
Job status | Tips to remortgage |
|---|---|
Self-employed or freelancing | Show your earnings from audited accounts for the last 1 to 3 years. Review your credit score and history. |
Maternity leave | Gather proof of your previous income, proof you’re receiving maternity pay, and a letter from your employer confirming your intended date to return to work (if you’ve agreed on one). Be open with your mortgage broker if you plan to go on maternity leave during the remortgage. |
Fixed-term contract | Lenders typically will want to see payslips and the contract itself. They’ll look for a history of a couple years of fixed-term contracting, so keep historic contracts on file. |
Remortgage advice
If things have changed for you since you last took out your mortgage, you may need a helping hand to find the right deal. That’s why we recommend the Mortgage Experts at Mojo. You get support every step of the way, and we make it easy to remortgage with free advice and access to thousands of deals.
And, when you have a slightly unusual financial picture (even if it’s temporary), having trusted advice can help you narrow down the deals for a successful mortgage application. Start with a call with one of our experts.
See more about mortgages
Check out our useful remortgaging guides that will get you ready, ahead of your next switch.
FAQs about remortgaging in complex job situations
While there’s no one set answer, generally, remortgaging requires looking at your finances, searching for new deals, and a bit of paperwork to make sure everything goes smoothly. The good news is you can make the process even easier for yourself - with preparation. Gathering documents ahead of time, knowing your income and expenses, and talking it through with a mortgage advisor is a good way to know your options ahead of time.
A mortgage broker will scour the market for you, making the process easier for you. They’ll also handle the paperwork and do the chasing. Of course, all of this depends on your affordability and circumstances – so talk to your mortgage broker to understand your own expectations.
Remortgaging is generally easier because you’ve already cleared the highest hurdles of homeownership (such as a property chain or stressful seller negotiations), so the legal process is significantly faster. If you stay with your current lender via a product transfer, you can often switch deals quickly.
All that being said, if your financial circumstances have changed, such as you’ve gone on maternity leave, become self-employed, changed jobs, or left a job, you may have to prove your affordability in a different way.
Yes, you can. Many UK lenders will ask to see your pre-leave salary for affordability checks, rather than your reduced maternity pay. You'll need to prepare the employer's letter confirming your return date and future income. If switching lenders feels too difficult, a product transfer with your current bank is the simplest route, as it typically requires no new income verification or paperwork.