Want to port your mortgage? Speak to our advisors today
Are you looking to move to a new home while keeping your existing mortgage deal? At Yomo Finance, we understand the importance of securing favourable terms, and our ‘port your mortgage’ service allows you to seamlessly transfer your current mortgage rate and terms to a new property. Call our team in Aylesford now to book an appointment.
What is mortgage porting?
Mortgage porting is the process of transferring your existing mortgage deal, including the interest rate, term, and conditions, to a new property when you move. Instead of taking out a brand-new mortgage, you essentially ‘port’ or carry over your current mortgage to the new home.
How can porting your mortgage be of benefit?
Retain your current interest rate
If you secured a particularly low interest rate on your existing mortgage and rates have since risen, porting allows you to keep that advantageous rate, potentially saving you thousands in interest payments
Avoid early repayment charges
Leaving a mortgage deal before the fixed or discounted period ends can result in costly early repayment charges. By porting your mortgage, you can avoid these fees since you're keeping the same mortgage terms.
Streamlined process
Yomo Finance has a streamlined and efficient process for dealing with mortgage porting applications. As your lender already has your information on file, applications are usually a smoother process.
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How much can I borrow?A typical mortgage applicant can expect to borrow four and half times their annual income. This should not be affected by your employment type unless your income is low or you have a poor credit score.
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What deposit will I need?There is no specific deposit requirement needed by self-employed applicants and the minimum deposit usually needed for a standard residential mortgage is 10%. That being said, with a short trading history, you will increase your chances of securing a mortgage if you are able to offer more than the minimum deposit requirement. This can also give you access to more competitive mortgage rates.
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Do I have access to the Help to Buy scheme if I’m self-employed with one years’ accounts?All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you. All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you.
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What documentation is needed for a self-employed mortgage application?Tax returns, business accounts and possibly a reference from an accountant. This all depends on whether you are a sole trader, a director of a Limited Company or are in a partnership.
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How many years of accounts do I need to provide?Usually, two to three years of accounts. However, you can get a mortgage with one year's books.
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Can I get a mortgage if I am a contractor or freelancer?Yes, but you may need to provide more evidence of income stability. Typically you would need 12 months history.
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How do lenders assess self-employed income?They typically look at your average income over the past two to three years.
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What can I do to improve my chances of getting a mortgage as a self-employed individual?Keep thorough records, pay your taxes on time and maintain a good credit score. You should also limit the amount of expenses you put through in order to maximise your income.
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Are there specific lenders that specialise in self-employed mortgages?Yes, some lenders are more flexible with self-employed applicants.
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How does fluctuating income affect my mortgage application?Lenders prefer stable and predictable income but may consider averages.
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What is the impact of a limited company structure on getting a mortgage?Your income may be assessed differently, focusing on salary and dividends.
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Are interest rates higher for self-employed mortgages?They can be, depending on the perceived risk by the lender but most do not charge higher interest rates for self-employed applicants.
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