Modern times have made it harder for almost everyone to move their homes using their hard-worked saved money. In case you want to keep your savings for some other purpose but you still plan on looking for a bigger place more suitable for your needs you have the option of getting a mortgage. If you already have one, in this article you will find more information about portable mortgages. If you do not have one and you wonder whether you can get a mortgage while being self-employed the answer is yes. Shortly, the information discussed in this article is based on the self employed mortgages subject and moving home mortgages, the costs involved when moving also what conditions are required to get a mortgage while being self employed or what you need to know when self-employed moving.

Self Employed Mortgages

Some of you may know how tough the entire process of getting a mortgage can be and you may imagine that if you are self-employed it can turn out to be close to impossible. It is not. It might be a little harder but it is not at all impossible. Getting self employed mortgages is considered to be tougher because proving you can be a good investment that affords to pay back the loan can mean providing at least 2 years of income information. If your profit is on a continuous rise this could be considered an advantage by most lenders and you can apply with only one year of income proof . The most common way for the income to be assessed as a self-employed company director is the salary plus dividends.

You will not be asked to put down a larger deposit than an employed person and you can be classified as self-employed if you own at least 25% of the business involved. Your business has to run for at least two years before completing a mortgage application and most lenders would like to see some proof of that timeline.

Interest Rates for Self Employed Mortgages

Interest rates for self employed mortgages do not vary from the employed ones. The only aspect that is different is the way the income has to be assessed. Besides that, you have to provide the information necessary to fulfill the application unlike in the employment situation where a broker can verify and acquire all the paperwork needed from the employer. There might be more documents needed in this case and more aspects to be taken into consideration but the interest rates are the same.

Self Employed Mortgages Rules


While this type of loan is pretty common there are some rules to be taken into consideration and checked before applying for a mortgage:

• Check your credit score . A high credit score can guarantee a successful application.
• Credit history has to be provided.
• The amount of your current debts. In case it shows you have to pay more than your income this can be considered a problem and your application may get rejected.
• In case your business is open more recently than 1 year there is a high chance you will not be considered eligible for this loan.

Moving Home Mortgages

There are two options regarding moving home mortgages. You can either apply to get a remortgage with your lender or another one, or you can move your current mortgage over to the next property, an action called porting a mortgage. If you are not sure about which option would better suit your needs you can contact a mortgage broker that can help you assess the situation and find the best choice in your case.

Porting Mortgages

Regarding moving home mortgages, porting your current contract to the new property can be a beneficial move to make in case you are content with the deal you initially got. You will have to go through the entire application process again and you might be required to increase its size to cover the whole cost of the new property in case it is bigger or it is located in a more expensive location than the one before. In this case of having to increase the loan's amount, your broker will inform you that taking out a separate mortgage to cover the difference is the best move you can do. This can add extra fees so it is best to talk to your broker first and find out which is the best option to avoid higher interest and additional fees.

Moving Home Remortgages

The process of remortgaging allows you to replace and take out a new loan with either your current provider or a new one. In this way, your rate can be recalculated and a better deal can turn out for you. Sometimes extra costs are involved. You might have to make an early repayment cost of up to 5% of the total loan. The percentage normally depends on the time left on the current contract. The closer the term ends the lowest amount you have to pay. In case you are on your lender's variable rate, this might save you from paying this cost. Another possible unexpected cost can be the exit fee. It is important to look more into these details before filling out an application.

If you want to find another lender while getting moving home mortgages you need to know that these fees have to be paid for ending a contract in mid-term. Also, additional arrangements and evaluation fees will be applied to your new contract.

Costs and How to Cut Them

While moving home mortgages can be stressful it is also a pricey process. There are a lot of fees involved from estate agencies, property surveys that have to be made, more mortgage arrangements, solicitor's taxes and so many more. You can try and make some calculations to see where you are standing first and check what actions you can take in order to cut some of them. For instance, if your mortgage deal is fixed-rated you should wait until the ending term so you can switch to a variable rate.

Whether you are enjoying your retirement or just starting in life, there are many obstacles you come across each day. For example, you must know how important owning a house is. To secure debt, you often need collateral, which means that you can use a property to obtain funds from taking out loans, including lifetime mortgages. But how can you acquire a property in the first place? You can use a deposit and finance the purchase using a mortgage, which is secured against the property you wish to buy. Additionally, there are solutions for people with low deposits known as shared ownership mortgages. As you can see, different circumstances require different plans, and there are solutions suitable for any problem.

The Basic Knowledge of Lifetime Mortgages

The requirements to take out a lifetime mortgage includes being over 55 years old and owning a property. However, you can apply for it even if you are not the only owner of the house you reside. You should be fully aware of how the monthly repayments are calculated, as they also include interest. Interest rates can be fixed or variable and are calculated depending on the amount of money you borrow. In the case you choose not to pay the mortgage, the interest will be repaid after the house is sold. Conversely, you can keep costs low by making regular repayments. In this case, if you pay off the debt, the lender will have no right to your property after your death.

When talking about the amount of money you can borrow, it can differ from case to case. Depending on the age of the borrower, lenders will offer a sum equal to a maximum percentage of the equity locked in the property. However, this limit will never exceed the total value of the property. Some mortgage plans offer higher borrowing limits for people with medical problems. The process of releasing equity is simple, and a mortgage advisor will assist you. However, there are many factors regarding this service that you must fully understand before proceeding to apply for it.

Why Choosing a Lifetime Mortgage to Release Equity?

Equity release provides a homeowner with the possibility to use funds from the value of the property. The most popular way to release equity is through lifetime mortgages. They are aimed at people over 55 years and allow them to unlock the equity built up in their property without moving or selling it. Releasing equity is a great way to manage your finances, as it comes with many advantages:

• Quick Money at Your Disposal

With an equity release plan, you can receive the funds either in the form of one lump sum or more, smaller ones. The money is tax-free and can be used however you deem appropriate.

• Optional Repayments

If you choose not to repay the mortgage, you have the right to do so and remain in your house as long as you live. Otherwise, you can make flexible monthly repayments. Flexible means that you have the option to repay the initial debt, interest rates, both combined, and other variations.

• Favourable Terms and Conditions

Your rights include the choice to stay on your property as long as you live. Additionally, you might need to downsize, and you can always move to another house. Other benefits include services like an inheritance plan or security against negative equity.

What Are the Different Types of Lifetime Mortgages?


Generally, lifetime mortgages work under the same concept. However, they can be categorized depending on two main factors. More specifically, mortgages can differ in:

• How Is Equity Released?

First, you can unlock equity in the form of one lump sum mortgage, meaning you receive all money at once. This is the most common type of accessing the funds. It allows you to repay other mortgages or make major home improvements. A drawdown mortgage represents the second option. You can withdraw smaller sums of money whenever you need. It allows you to live a happy retirement, as you have a source of cash for any unexpected expenses. Additionally, it can be more convenient for interest rates, as you pay interest only on the borrowed amount of money.

• How Is Equity Repaid?

There are two main ways of repaying equity. The first option is an interest roll-up mortgage. As its name implies, it gives you the possibility to make no payments. The interest is calculated depending on how much you borrow and will continue to be added to your mortgage. Finally, it is repaid when the house is sold. The second option is to make regular payments to reduce the high build-up of interest. If you consider each possibility, you will be able to choose the best mortgage plan.

How Do Shared Ownership Mortgages Work?

Now you understand how important can releasing equity be for some people. But what about those who are not homeowners? Fortunately, there are many services that help you get on the property ladder. First-time owner plans help you finance the purchase of a home with some requirements. Usually, they require a suitable deposit. However, there are attractive solutions for people with smaller deposits, such as shared ownership mortgages. Basically, you can purchase a share of the property and pay rent for the rest of it.

Shared ownership mortgages are an accessible alternative for people with lower income, as the repayments are cheaper compared to other mortgages. You will own the share you initially bought and can increase it whenever you afford it.

Shared ownership mortgages are popular among many people, as they are used for buying only part of a property. For the other part, you will pay rent, and the larger your share is, the lower the renting costs are.

The main benefit of shared ownership mortgages is the reduced deposit needed, calculated as a percentage of the share you buy. You can happily live in your home and make any improvements you want.

With time, you will have the opportunity to gradually increase your share in the property until you fully own it. It may take some time, but in the end, you will be a proud homeowner. This status will open many doors for you, including the equity release option previously discussed.