Contractor Mortgages
Mortgages based on hourly/daily rate, we are experts with over 10+ years experience working with contractors.
Don't let your mortgage make moving home even more stressful. We're here to make things easier.
Contact UsThere are many reasons why you may decide on moving home, but for most of us the stress of moving puts us off. The thought of moving home can be daunting for some, however we’re on a mission to change the perception on moving home from a negative to a positive experience.
Over the past decade we have worked with hundreds of home movers. It can often seem there are too many people involved, none of whom are working together. With our tailored process and proactive approach, we will actively be working with all parties as a team to ensure your deadlines are met.
There are many things to consider when moving home, see below
The term ‘porting’ means applying to take your current mortgage and interest rate to a new property. This often avoids you having to pay any early repayment charges to your existing lender.
If you require a larger mortgage, you can apply for a ‘top up’ amount, subject to a new interest rate with your existing lender.
Although you already have a mortgage with that particular lender, we still need to make a new application to determine whether you’re eligible for the new mortgage amount.
We can still port your mortgage even if the original mortgage was arranged elsewhere.
In some cases you may not be ‘tied’ into a mortgage product and will be free to explore new and potentially better options with a new lender.
As with any mortgage application a new lender will need to assess affordability and credit scoring.
They will expect your current mortgage to be redeemed when you move into your new home, unless you’ve specifically told them otherwise.
If you are looking to retain your current home as an investment, a Let to Buy mortgage could be an option for you.
Let to Buy means you are applying for two mortgages simultaneously. The first being your new residential mortgage, the second being a remortgage on your current home and changing it to a Buy to Let.
By moving it to Buy to Let you can rent the property once you have moved out. You can apply to borrow more on the Buy to Let mortgage to help with the deposit / fee’s for the new purchase you are looking to make.
In short, you buy a new home and rent your current.
Consent to Let involves your current mortgage lender giving you permission to let your property for an agreed period of time, without having to change the mortgage to a Buy to Let. Typically Consent to Let is only allowed when you are tied into a product with a lender.
The lender will usually not allow you to borrow more and may sometimes increase the interest rate you’re currently paying on an annual basis.
Once your current mortgage product comes to an end you will then have to arrange a traditional Buy to Let mortgage to replace the original mortgage (assuming you want to keep renting the property out).
If you are intending to rent your property this must be agreed in writing by your mortgage lender. You must request this directly from them.
If you are looking to purchase a second home, there are options to apply for a second mortgage.
Most lender’s will often ask for a larger deposit and will need to assess affordability closely as the will need to ensure you can comfortably afford both properties (mortgages, bills, running costs etc).
They will also look at the scenario and whether it’s feasible. If you are purchasing a property near to your work to avoid a long commute then this is common, along with if you are looking to purchase a property to visit on weekends then this is usually acceptable.
It’s unlikely they will let you purchase another residential home in close proximity to your current home.
If you are moving home and currently have a mortgage, we will assess your situation to see if we can ‘port’ your existing mortgage to the new property.
Most mortgages will have the ability for you to move your mortgage to a new property and avoid any early repayment charges. Even if we didn’t arrange the original mortgage we would be able to still carry out a porting application if the lender allows it.
If your current mortgage is ‘portable’ then we may be able to avoid the early repayment charges you have with your current lender, this will always be our preference as it’s often far cheaper.
It will be subject to whether you still meet the lending criteria and affordability rules with the lender. If you are unable to ‘port’ the mortgage to the new property for whatever reason or do not have a portable mortgage then the fee’s will need to be paid once the mortgage is closed.
Yes this is possible, there are two main scenarios we see. The first, you may want to rent your current home once you have moved into your new property. This is known as a Let to Buy or getting consent to let, which to keep it simple would mean you rent your current home once you’ve moved out.
The other scenario we see is a second home loan. This is when you are looking for a property to reside in throughout the weeks or on the weekends.
Again this is a possibility, however we would need to carry out some analysis on your affordability as the new lender will need to factor in the current costs payable for your main home to ensure you can continue to service both properties.
Having a broker is beneficial for a number of reasons.
When arranging your mortgage directly with a bank, you will only have access to the products that particular bank offers, whereas we work with over 140 different lenders which could offer far more competitive products.
Another reason why working with us is beneficial is that we’re experts in what we do. Applying for a mortgage alone can be difficult, we’re here to provide advice as to what mortgage is most suitable for you.
Not normally. When getting an agreement in principle, most lenders will leave a soft credit search therefore will not impact your credit score. They also will not contact your current mortgage lender for any reason.
Yes you are likely to pay additional stamp duty on your new purchase because this is an additional property. You will need to get confirmation of this from your solicitor. It’s important to know before proceeding with your mortgage application so you can factor this into your costs.
14th July 2023
Mortgages based on hourly/daily rate, we are experts with over 10+ years experience working with contractors.
We are here to help you take your first step onto the property ladder, with deposit options as low as 5%.
Is your remortgage due soon? We have access to over 140 lenders and have access to thousands of mortgage products.
We offer a range of Buy to Let mortgages to new and existing landlords, including HMO and Limited Company applications.