Mortgage, savings and self employment advice.

sanfrancisco

Hello,

So my husband and I are about to swap roles. I am going to be working full time and he is going to be at home with our children. He is pausing a very well paid career and I am going to be starting a low paid one. We have been saving hard for this.

So my question is about what to do should we want to move house.

Our house is worth approx £600k. We have a mortgage of £200k. We have savings of £500k. If we wanted to move house before my husband is working again, how could we do it, by keeping our savings intact?

Say the new house is worth £900k. We might be happy to pay £300k of our savings to new house, but would want to retain flexibility of having savings still and not have to pay the £200k mortgage as well. We would want to port it. My income will not be enough to borrow £200k.

Are there savings only mortgage products around (maybe normally aimed at older people?)

Could we set up a company and pay the company/my husband a salary from our savings, so it seems like he has a income? Is this legal? Would we have to pay tax?

Many Thanks in anticipation.

kingstreet

Porting a mortgage is moving the rate from one mortgage to another if you qualify for that mortgage; not moving a mortgage from one property to another.

Any mortgage is subject to affordability checks.

No. That would not be legal.

sanfrancisco

Thanks kingsteet.

I did not know that about porting. Thanks.

Do you know why it’s illegal? I’ve had a look online and can’t see or find the right info.

ACG

It is Fraud.
You are telling the Mortgage lender that your husband has a job that does not exist.

On a side note, the lender would need to see one years accounts and you would have to pay tax on the job. But that is more of a minor issue as I am sure paying unnecessary tax is a lesser punishment than spending time at her majesty' pleasure.