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Madeleine is able to assist whether you are a First-Time buyer, home mover, re-mortgaging or a buy to let investor. In addition, she can provide advice on life, critical illness and income protection insurance to protect your mortgage or lifestyle.
I asked Madeleine a few questions that may be useful to my clients: -
1. Can I get a mortgage easily as someone who has only worked for myself for 18 months?
Yes, the minimum time self-employed you need is just 1 year. You have more options once you’ve been self-employed for 2 years though. However, something to bear in mind is how your income is affected by going self-employed. The mortgage company will use your Net Profit figures from your ‘declared income’. Often when a new business starts, their first year isn’t a true reflection of earnings and it is often better to wait until you have 2 years accounts.
2. What will I need to show as proof of earnings to a mortgage provider?
If you do self-assessment, you will need to provide your tax calculation (used to be called an SA302) and your tax year overview. As above, ideally 2 or 3 years, but it is possible from just 1 year. If you are a limited company, it is better to provide your mortgage adviser with your most recent accounts and also any self-assessment documents, if your dividends are declared differently. Most mortgage companies will write to your accountant for the info they want, however, by giving your full accounts to your mortgage advisor, they can advise on which mortgage company would suit you best, depending on how you take your income. For example – some mortgage companies will use your salary and dividends as your income, others will look at ‘retained income’ too on top of salary – so if you leave funds in the business, this might suit you better.
3. How many times my earnings can I get on a new mortgage /when I re-mortgage?
Unfortunately, it isn’t that simple, Mortgage affordability is now based on income and outgoings to calculate your maximum borrowings, so 2 families that both have joint incomes of £80,000 may have completely different mortgage affordability based on their family make up and different credit commitments.
4. What’s your opinion on the projections for the property market in 2020?
Since the start of the year, the country has experienced what the media is calling the ‘Boris bounce’. There was a lot of uncertainty before the election as to how Brexit would happen. Now the conservative government has held power and the Brexit process has started, it has really stabled the markets and the housing market is now experiencing a busy growth period. This is the busiest start to the year I have had in 5 years and the estate agent I am based in is extremely busy too. Looking forward, who knows?
5. What do you think about shared ownership?
A great option for people getting on the property ladder when they are on a career path where their salary grows each year and they therefore have the option to buy further % each time the option comes available. With shared ownership, you pay rent on the % you don’t own, this portion grows with the market value, as does the rent due, so really you should be looking to buy further % of the property over time or your costs will increase.
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