So you became a freelancer and now believe you’re doomed to be a forever-renter? Started up your own company and can’t seem to catch a break, never mind credit? We’re here to retrain your brain, and your financial outlook. It’s time to turn that frown upside down mortgage-lusters, because we’ve got all the ways to get on the property ladder when you’re self-employed.
First things first, you are worth it honey. We know it, your Uncle Barry knows it, and all the shampoo ad models know it. But the mortgage loan guys, they need you to prove it. Think of it like lip syncing for your life, except the song is your bank statements and Ru Paul is your mortgage broker. Show how reliable your income is and shake that money maker for all you’re worth. Because it’s bound to be more than you think. Keep records of your invoices and get those bank statements seriously shiny, showing the last two to three years of salary, business statements and rent payments. More on this later.
And by that we mean, what kind of self-employed broody-for-a-mortgage-baby are you? This will have an effect on the types of documents and prep you’ll need to summon from your bad self on an otherwise frantic Sunday evening. (It will definitely take longer than a Sunday evening, sorry). Own more than 20% to 25% of a business, from which you earn your main income? Invoice a company for payments instead of using PAYE?
*All contracts need to clearly show your day-rate and have been paid in sterling, with an expiry date ideally included on each contract.
That’s right, we want to see you getting that credit score in ship shape before you make any applications and saving up a healthy chunk of deposit too. This will work wonders for your chances of receiving that longed for ding of acceptance into house owning world.
It cannot be avoided, there is an a*** load of probing paperwork to get through before you make the house buying plunge. As well as providing evidence of your income, you will also need to gather up and dust off your:
Ru Paul* will want to examine your bank statements with a fine tooth comb and politely ponder how much you spend on bills and ‘other costs’ (seriously who needs that much bike oil) just to be certain you can definitely afford your mortgage repayments. Ru* may ask questions about your household bills, loan repayments, credit cards, holidays and travel costs (oh right, you literally do cycle everywhere).
You’ll also need:
*not actually Ru Paul. But imagine if your mortgage broker / loan guy was called Ru Paul though? Please tell us if/when this happens.
See, that wasn’t so bad was it? We’re always here to chat through any confusing step of the process and we do actually know what we’re on about.
Why not give us a call on 0207 2727 0986 or drop us a line at info@daviesdavies.co.uk with any queries.
alex@daviesdavies.co.uk – Lettings Manager (contact for lettings and property management)
mark@daviesdavies.co.uk – Sales Manager (contact for sales, new homes and chartered surveying)
020 7272 0986
Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG
Article by Barefaced Studios
Photography by Barefaced Studios
It’s true that a lot of homes are snapped up by first timers carefully clambering upon one rung of the ladder, or experts keeping afloat in the deep end of the property pool. But sometimes, whilst you’re having a quiet sit down in the swimming pool canteen, a property can be handed to us on a plate with a side order of inheritance tax. For these exercise avoidant foodies, it can be a little overwhelming. That’s why we’ve compiled a handy guide for those of us who’ve inherited property, when we were simply expecting a mediocre helping of soggy sausage and chips.
Read More...So it’s your first time? Do not fear, D&D are here. While finding out how to become a buy to let landlord can be a daunting prospect, we know all too well the value to gain from embarking on such new, uncharted territories. Although recent changes to taxation last year, meaning you can no longer deduct mortgage expenses from rental income, a buy to let property is certainly worth the investment once you’ve grasped the ins and outs of the market. So let us hold your hand through the process, if you’re comfortable with that of course Keith.
Read More...Overspent on pizza, can’t afford your repayments or got yourself into debt? Let us answer those awkward mortgage questions you’re too embarrassed to ask. Don’t be shy, welcome to the Annual Awkward Mortgage Q&A with your friendly property experts. Those burning queries you have that might be a bit on the sensitive side? Well, we’ve heard it all before and there’s no judgement here at all!
Read More...85 Stroud Green Road
Finsbury Park
London, N4 3EG
Mon – Thurs: 0845 – 1815
Fri: 0845 – 1800
Sat: 1000 – 1600
Sun: Appointments by request