It may be harder for the self employed to get a remortgage, but not impossible. Not at all. The new Financial Services Authority (FSA) regulation has prohibited loan applications from being approved without proof of income. There will no longer be self-certification loans.

The regulations don’t officially go into effect until April 2011, but the majority of lenders will be implementing the new rules now. So how does a self-employed worker verify income?

The self employed borrower can show the last two year’s tax statements as proof of employment. For some lenders they may ask for three. Lenders may also want to see signed contracts showing your intended income for the future.

For the self employed it will be more difficult in producing proof of past and future earnings. Once that part is taken care of though you are on the same path as other borrowers. To improve your chances of getting an approval make sure you have your paperwork in order and are ready when meeting with your broker or lender. Should you not have 2-3 years income records available you may find it difficult to remortgage. It doesn’t hurt to seek advice from a remortgage expert.

If you aren’t able to secure a remortgage then plan for the future and check with an accountant on how best to prepare your paperwork for income proof. Also lenders may develop new products for self employed borrowers while still using FSA guidelines. The good news is that with the base rate at 0.5 per cent, if you were thinking of a remortgage because you are in a standard variable rate (SVR) then currently your rates are very good.