Getting a mortgage if you’re self-employed

Self-employed people often worry about getting a mortgage because it isn’t always easy for them to demonstrate they have a stable income.

Around 15% of the UK’s working population, equivalent to 4.93m people, are currently self-employed, according to latest data from the Office for National Statistics (ONS).

It used to be the case that those working for themselves could ‘self-certify’ their income when applying for a mortgage. In other words, they could simply tell the lender how much they earned without having to prove it. Self-certification mortgages are no longer available due to stricter lending regulations, so now anyone who is self-employed must be able to show lenders proper records of their income and outgoings.

This can be difficult for those who’ve only recently started working for themselves and don’t have several full years of accounts available, or whose income varies greatly from month to month.  Recent research by Kensington Mortgages found that 68% of Britain’s self-employed workers are finding it tricky to get a mortgage, with one in five (22%) of self-employed renters claiming that they’ll never be able to get onto the property ladder due to their fluctuating income and steep house prices.

However, self-employed people typically want to borrow much less than most lenders would allow, according to Kensington’s mortgage application data, making them a safer bet than many first-time buyers.

Ways to boost mortgage chances

Self-employed people can boost their chances of having their mortgage application accepted by making sure they’ve got all their paperwork in order.

Lenders will usually want to see proof of earnings for the last two to three years. However, some are prepared to accept only one year’s records for those who’ve only recently become self-employed.  They will typically accept self-assessment tax calculations (SA302 forms) and a tax overview, rather than a full set of accounts. They may alternatively ask the accountant responsible for preparing the applicant’s accounts to certify their income.

Any paperwork supplied must be recent. Usually the most recent year-end documentation mustn’t be older than 18 months prior to the date of the mortgage application, or it may be rejected. This means that figures for the 2017/18 tax year are now no longer acceptable as the latest year’s figures, so self-employed mortgage applicants will need to submit figures for the 2018/19 tax year.

Other paperwork

Proof of income isn’t the only paperwork that lenders will need to see from self-employed mortgage applicants. Everyone who applies for a mortgage, regardless of whether they are self-employed or an employee, must show proof of their identity, such as a passport or driving license, and proof of address, typically a gas or electricity bill or a council tax statement showing the applicant’s name and address at the top.

Applicants must also submit current account bank statements showing their outgoings, such as the amount they spend on childcare each month, any pension contributions, utility bills and so on.

Lenders will usually want to see the last three months’ statements, although some may ask to see statements for the last six months.

For more information about which mortgage might suit you simply click here or give us a call on 01364 652652.

Is it the right time for you to move?

It comes to us all. That defining moment. It can be brought along on winds of opportunity, on the back of financial necessity, or because we have simply outgrown our comfy shell; but it comes to us all.

 All men must move house.

But sometimes, what do we say to the god of moving? Not today…

Moving house is often cited as one of the most stressful stages of life, aside from getting married, that we as humans can experience.

Maybe that’s because when it comes to selling your home, you need the same levels of commitment as you do in marriage. To succeed, you need to be 100% motivated ahead of this next big step.

After all, for better or worse, there are many hurdles to overcome along the way; it is not a process for the fainthearted.

From the minefield of surveyors’ reports, negative feedback, Rightmove statistics and low offers, to the constant cleaning ahead of each new viewing, you’ll need to be in the right frame of mind to face the challenges ahead.

Here we shed some light on factors that could help you decide whether the time is right to go on the market.

1. Wish or whim?

How long have you been thinking about moving on?

Is this a deep-seated spark of desire that has been on the slow-burn and is now catching fire? Or is it a sudden, snap reaction to other external factors?

Has your friend recently moved house and you’ve caught a sniff of fresh-start frenzy?

Take a moment to consider the pros and cons and implications, both financial and emotional, that moving house right now could have.

A friend of mine has been toying with the idea of relocating from the city to the countryside for the past twelve months. Finally, he decided to bite the bullet and has handed in his notice at work.

Fortune, we are told, favours the brave, but, with his notice period ending in July and his second child due in August, is this move down to his long-held wish to move, or based on an idealistic whim?

Whilst a growing family can often be the spur behind a house move, timing that move so that it causes the least financial and physical disruption to your family is key.

2. Why do you want to sell?

Are you preparing to downsize, relocate or are you planning a family?

The reasoning behind your potential move is crucial, as is the timing of its execution.

For downsizers, the decision can be a tricky one. Perhaps you have recently said farewell to the last of the brood to fly the nest. The house suddenly seems so quiet. Is now the time to take your life plans off the back burner and make that move to a smaller, more economic home?

Spending less time cleaning empty rooms will certainly be a plus point. Perhaps you want to swap those three double bedrooms for a studio where you can finally sketch that masterpiece, or realise that ambition of becoming an amateur photographer. It might make sense to make the move now, before the next chapter begins and grandchildren are in the offing!

If you are planning to have children, it is only natural to desire more space for your expanding family. For those already with children, the ages of your nippers will factor greatly into the timing of your house move. Keeping disruption to your child’s education, particularly if you are locating to a new area, is crucial to a successful move.

Pros and cons exist for moving at all ages; babies and toddlers are malleable and can handle the changes with ease – yet older children are able to help with the packing! For teenagers with close local links, timing is crucial.

No move is without its traumas, but do take the time to consider exam dates and how a move will impact on your child’s school life, hobbies and interests before putting up that for sale sign.

3. Which season is best for selling your home?

Your mind is made up. You are moving house. But when is best to move?

Historically speaking, spring is oft cited as the premium time in which to put your home on the market. Key ‘hot points’ occur around the Easter and May bank holidays.

The benefits to selling at this time of year are easy to recognise: the days are long, the sun is (usually) shining, the blossom is blooming and properties generally look at their finest.

House hunters are out in their droves, and – dream of dreams – if you price your house competitively, you might even prompt a bidding war!

What about summer?

If your target market is families, summer has traditionally been perceived as a troublesome time to sell. With the school holidays in full flow, trips abroad and entertaining the wee ones tends to leave the streets devoid of house-hunters.

Getting your house on the market at the start of summer should help you avoid the peak holiday dates, when your target market will be abroad. Of course, if you happen to have a home with a large garden and pool, summer could be the ideal time to sell.

Autumn is the season of change and that goes doubly so for house sales, with people keen to move on before Christmas. If Christmas leaves you raring for change, turn over a new leaf in January.

4. Monday’s house is fair of face…

Want to get down to the real nitty gritty of timings?

You might feel sluggish when the alarm clock goes off at 7:00am on a Monday morning, but according to Which?Money analysis published in 2017, Monday is the best day of the week to sell your house!

According to the survey, properties listed on a Monday took only 176 days to sell compared to an average of 191 days.

So, if you were planning on leaving it until the weekend to amble down to your estate agent to give the green light for your launch, think again. The same research suggested that properties listed on a weekend took longer to sell, with Saturday listings taking an average of 203 days to sell and Sunday homes taking 213 days to sell.

With much at stake emotionally and financially, finding the right guidance when selling your home can make all the difference. If you want to know whether now is the right time for you to start a fresh chapter, just pick up the phone. We’re waiting to hear from you.

Wanting to reach more buyers ? 

We are holding a property ehibition in our London office on Park Lane, promoting properties we have on the market to the lucrative London and International buyers and investors.  One of these properties could be yours.

Let us present your home in our next exhibition.

TO BOOK YOUR SLOT AND TO FIND OUT MORE JUST CLICK HERE.....

When it comes to selling your house, the viewer becomes the VIP. Here, we help you prepare for that all-important ‘state visit’.

We all have that friend. You know the one. The rarely-seen frenemy who, when they text to say they’re in the area and ‘might drop by’, you drop everything to ensure your home is military-precision perfect.

If you are selling your house, this high state of alert can become trying. You need your home ready to bring its A-game every day of the week. Because this visit isn’t simply a matter of pride; it’s about clinching that all important sale.

In a perfect world, we would all appreciate a clear day’s notice (preferably when it’s raining outside and we have nothing better to do) to tidy and prepare for a viewing. In reality, in between calendars filled with children, pets and work schedules, we can often be left with mere minutes to get the house spic and span.

Below, we have compiled our top six time-saving tips to help speed you through the preparation for these high-profile visits.

1. Clear spaces

Even the largest rooms can look poky when they are overcrowded with everyday clutter. Take a real look around the room you are sitting in right now. What can you see that doesn’t belong?

First impressions are crucial, so be sure to give the whole house a thorough ‘sweep’ before your viewer arrives, removing all non-essential items that might distract the viewer.

It is important that your viewer has the opportunity to envision themselves living in your home; a task hard to achieve with your toddler’s abstract handprint masterpiece adhered to the fridge.

Short on time? Grab a laundry basket as you tour the house, placing errant items in there. Stash the basket in your car until after the viewing.

 Top tip: pay attention to bookshelves. They can often be magnets for day-to-day detritus such as hair grips, pens and loose change.

2. What about the children?

Now your home is clutter free – it’s time to keep it that way. You love your kids, you love your dogs, cats, iguanas and so forth. The trouble is, your viewer may not.  Ensure that when it comes to that all-important visit, children and animals are kept off premises. A cat jumping on the surfaces will not convey the clean and pristine image you wish to portray of your kitchen to a first-time viewer.

Similarly, your attention should be entirely focussed on answering (and pre-empting) your viewer’s questions, not on helping your child to find their football kit or the Wi-Fi password.

As with other clutter, remove any pet bedding, where possible, for the duration of the visit.

Be sure to do a final sweep for lost Lego pieces under the sofa (viewers have the keenest eyes) and pay a visit to your pets’ favourite corners to check for recent hair deposits and you’re good to go.

3. Selective cleaning

With only fifteen minutes to go before the viewing, we aren’t suggesting you do a deep clean of the home, its soffits and facias.  Quite the opposite; the last thing your viewer needs is a nose full of ammonia as they step through the front door.

It is important, however, to ensure that any surfaces they are likely to touch are clean and crumb-free. A quick wipe down of the kitchen worktops will suffice.

Check mirrors and windows for smudges (if you’re running short on time focus on en-suites and the main family bathroom) and run a damp duster over televisions and computer screens.

If you have a log burner, it is often the focal point of the room. Be sure the clean the glass before viewings. The quickest and easiest way to do this is by taking a clean, damp cloth and dipping it in the ash from the previous fire. This will remove even the toughest smears and black soot with minimal effort.

 Finally, run the hoover around the floors to remove any loose fluff and fuzz for a smooth and sanitised appearance.

 4. Olfactory appeal

Falling in love with a home is a full-sensory experience. And just like any first date, it’s important not to over-face the viewer with too much fragrance. The old adage is to bake bread or brew strong coffee, but our fifteen-minute countdown calls for much simpler solutions.

Open a few windows to let the fresh air in. This is particularly important in spare bedrooms and lesser-used rooms which can sometimes accrue a stale smell.  If you have stronger odours you need to combat, then consider spraying your fabric sofas, carpets or curtains with a mixture of water and fabric softener (just a few drops will suffice).

Quicker still, pop a tumble drier sheet on a radiator and let the gentle scent suffuse the air.

Avoid stronger invasive perfumes such as incense or potent aromatherapy candles. Neutral and clean is far more appealing.

5. Let there be light

No matter the time of year, create a sense of cosiness in your home by flicking on the lamps in every room. Again, pay attention to neglected spaces such as studies and guest bedrooms.

If your kitchen has plinth lighting, now is the time to let it shine.

Keep a sense of symmetry in your bedroom by lighting both bedside lamps, or even by lighting a candle or two on the dressing table.

As well as making your home appear bright, switching on lights helps to make your rooms feel both larger and warmer. 

6. Keep a cool head and a warm hearth

Minutes to go before the VIPs arrive. If you’ve opened the windows to air any rooms, now is the time to close them and check the temperature.  The comfort of your viewer will dictate the amount of time they spend in your home – and ultimately whether they feel your house is a welcoming prospect.

On warm summer days, keep the air flowing and consider leaving windows open. If it is windy, wedge doors so they don’t bang in the breeze.  Even on the hottest days, your log burner should still be dressed in a cosy and inviting manner. Stack the fire with a few logs and light a candle on the hearth to convey the warmth and comfort it provides, without causing your viewer to perspire.  

In the winter time, pop an instant burning log on the fire for that homely glow. No need to fuss with firelighters when time is of the essence.

Now that the house is ready, play some Einaudi at low volume and spare a minute to check your own appearance in the mirror. You look great! And so does your home.

We hope our six top tips have taken some of the worry away, but if you’re feeling overwhelmed by the prospect of viewings, just pick up the phone. We can arrange to chat with you over a cuppa. We’re waiting to hear from you, call us now on 01364 652652 or 01626 852666.

We are proud to announce that Sawdye & Harris have been awarded Platinum membership of the newly launched Property Agent Rating Scheme (PARS). The scheme has been designed to make the whole process of renting for landlords and tenants as easy and smooth as possible whilst ensuring that all agents are complying with letting regulations. It allows landlords and tenants to easily identify who they can trust to look after their interests.  The private rented sector is now the second largest tenure in England so this goes to show just how important this scheme is. 

Teignbridge District Council have recently launched a new scheme working with local landlords, landlord associations, letting agents, solicitors, and accountants, the PARS scheme is a means of ensuring that all letting agents and property managers comply with letting related legislation.

Designed to be similar to the familiar ‘food hygiene rating scheme’, Property Agent Rating Scheme (PARS) will see participating agents displaying window stickers and certificates at their premises and ratings on their websites. This will enable landlords and tenants to easily identify who they can trust to look after their interests.

The need for an effective scheme was identified to make the whole process and experience as simple as possible for both landlords and tenants. The importance of having a scheme like PARS is backed by figures showing the private rented sector is now the second largest tenure in England.

For more information and to find out if you letting agent is a member visit - https://www.teignbridge.gov.uk/housing/landlords/property-agent-rating-scheme/about-the-scheme/