Porting a Mortgage in London

When porting a mortgage, you will need to provide several key documents to your mortgage lender. These documents are necessary to verify your financial situation and ensure that you qualify for the mortgage on the new property. The primary documents required typically include:

1. Proof of Identity: A valid passport or driving licence.
2. Proof of Address: Recent utility bills, council tax statements, or a bank statement showing your current address.
3. Proof of Income:
   • For employed individuals: Recent payslips (usually the last three months) and a P60.
   • For self-employed individuals: Tax returns (SA302 forms) and a tax year overview for the last two or three years.
4. Bank Statements: Typically, the last three to six months of bank statements to show your income and outgoings.
5. Details of Your Existing Mortgage: A recent mortgage statement from your current lender.
6. Property Details: Information about the property you intend to purchase, including the purchase price and estate agent details.

If your financial situation has changed since you originally took out the mortgage, the lender might require additional documentation to reassess your affordability.

Yes, as a self-employed individual, you can port your mortgage, but there are a few extra considerations. Lenders often scrutinise the financials of self-employed individuals more closely because their income might be less predictable compared to those who are employed.

To successfully port your mortgage, you will need to provide comprehensive evidence of your income. This typically includes:

• SA302 Forms and Tax Year Overviews: Lenders usually require the last two or three years of SA302 forms, which are summaries of your income from HMRC, along with corresponding tax year overviews.
• Business Accounts: Up-to-date business accounts prepared by a certified accountant, usually covering the last two or three years.
• Bank Statements: Personal and business bank statements, often covering the last three to six months.

The lender will assess your affordability based on this information. If your income has decreased or if the lender perceives your income to be unstable, it may impact your ability to port your mortgage. However, if your financials are strong and consistent, porting should be feasible.

Porting a mortgage with bad credit can be challenging, but it is not impossible. Whether you can port your mortgage will largely depend on the severity of your credit issues and the specific policies of your lender.

Lenders typically reassess your financial situation when you apply to port a mortgage, including a new credit check. If your credit score has significantly deteriorated since you originally took out the mortgage, the lender may consider you a higher risk, which could affect their decision.

In some cases, lenders might allow you to port your mortgage but with stricter conditions, such as a higher interest rate or requiring a larger deposit. Alternatively, they might decline your application to port the mortgage altogether, in which case you would need to explore other mortgage options, potentially with specialist lenders who cater to customers with bad credit.

Not all mortgages are portable. While many mortgage products offer portability as a feature, allowing you to transfer your existing mortgage to a new property, some do not.

The ability to port a mortgage is generally stated in the terms and conditions of your mortgage agreement. If your mortgage is not portable, you would need to apply for a new mortgage product when moving home, which might involve paying early repayment charges if you are still within a fixed-rate period.

Even if your mortgage is portable, it is important to note that porting is not guaranteed. You will still need to go through the mortgage application process again, and the lender will reassess your financial situation to ensure that you meet their current lending criteria. Additionally, the new property must meet the lender’s requirements in terms of value and condition.

If you are unsure whether your mortgage is portable, it is advisable to check your mortgage documents or contact your mortgage advisor in London for clarification.