On the surface, it may seem like the employed and the self-employed deal with two completely different mortgage markets. Actually, the same rules apply to both mortgage markets. They also manifest themselves in much the same way. If you understand this, it becomes much easier to navigate the mortgage market when you’re self-employed. The basics of the mortgage market Ultimately, getting a mortgage boils down to your ability to show a lender that you are both able and willing to pay it back. Lenders assess this by looking at your past and present to see what they can infer about your future. Your past is represented by your credit score. Your present is represented by your deposit, bank statements and proof of income. Your future is inferred from the information you give about your past and present. Another key reality of the mortgage market is that lenders are all individuals. There are some basic rules they all need to follow. There is, however, often a lot of scope for them to exercise their own judgement. This means that your chance of getting a mortgage can depend, at least in part, on where you make your application. What this means in practice What this means in practice is that success in the mortgage market is less about employment status and more about effective preparation. If you’re self-employed, you should be preparing at least three years in advance. The employed may be able to cut this down to a year. Even for the employed, however, longer is better. Here are the main points you need to address. Your credit score There are numerous online articles about the importance of your credit score and how to take care of it. Read them and follow their tips. If you know you have bad credit, then make an active effort to repair it. You may find this process easier if you can get professional help. If you can’t, however, again, there’s plenty of information available online. If you really can’t repair pre-existing issues, then remember that, eventually, time will deal with them for you. It can take multiple years for certain markers to be removed completely. You can, however, work to make these markers less relevant by showing that you are managing your finances well now. Be aware that this strategy is unlikely to yield overnight results. That’s why it’s important to start any repair work as soon as possible. Your deposit There’s probably nothing more that can be said about the importance of having a substantial deposit. Again, these take time to build so give yourself as long as you can to do so. Your bank statements Lenders will typically ask for copies of bank statements as part of your mortgage application. You should be prepared to hand over at least 6 months’ worth of statements. It would be advisable to think about how these would look to a lender. For example, even if you can afford the occasional flutter, you might not want to advertise that fact on your bank statements. Your proof of income There are two factors to consider here. One is explicit and the other is implicit. The explicit factor is the amount of income you can demonstrate you have earned up to the point of your application. The implicit factor is what the lender thinks of your prospects of continuing to earn at least the necessary level of income to be able to afford your mortgage repayments. This is where the situation can get challenging for the self-employed. They need to be able to show that their business model is viable over the long term. For this to happen, the lender has to be willing to listen, objectively, to their explanation. This is why applying for the right product with the right lender can be so important. Applying for the right mortgage product with the right lender Do your own research thoroughly and/or use a mortgage broker. Make sure you only apply for mortgages where you have at least a decent chance of being accepted. For mortgage advice, please get in touch Your home may be repossessed if you do not keep up repayments on your mortgage.

Overall, the housing market in the UK is so strong it is literally a standard figure of speech. Nevertheless, it has been through its rough patches. There are increasing signs that the foreseeable future might be one of them. The case for continued strength The UK must have a general election by January 2025. It’s certainly not out of the question that one will be called early. Even if the government does stick to the schedule, it’s already getting very near to the time for early campaigning to start. That means, realistically, the government is going to be even more motivated than usual to protect the housing market. In fact, the decision to raise the SDLT (Stamp Duty) threshold could arguably be seen as having been made with an election in mind. It’s also worth noting that the UK still has a chronic undersupply of housing both to buy and to rent. This means that it tends to be a seller’s market. Periods of weakness, therefore, are generally due to people being unable to buy rather than unwilling to do so. Right now, the UK’s labour market is still very strong. All things being equal, more people in work means more demand for housing. Some people will be looking to buy themselves. Others will be looking for rental property, hence landlords will be looking for property they can let out to them. The case for weakness There are two key reasons for being cautious about the direction of house prices in the immediate future. Both connect to inflation. The first is the fact that the housing market has enjoyed a spectacular run since the start of the SDLT holiday. The second is that inflation is eating away at the real-world purchasing power of UK adults. What goes up doesn’t necessarily have to come down. Equally, it won’t necessarily keep going up forever, at least not at the same rate. Ever since the chancellor introduced the SLDT holiday, the UK housing market has been forging ahead at full speed. No market can keep going at that rate forever. No matter what the conditions, sometimes markets have to stop for breath. This is generally when they’ve got so far ahead of themselves that they need to give other people time to catch up. Specifically, they need to give potential buyers time to build deposits and grow incomes to afford higher prices. At present, the reality for many working adults is that the high demand for labour is not translating into high wages. The most likely reason for this is that employers simply can’t afford it. In short, therefore, working-age adults can be reasonably confident of being able to get a job but their effective pay could be significantly lower than they would like. Will house prices actually drop? Weakness in the housing market does not necessarily mean that prices will drop. It could simply mean that they’ll stay (more or less) where they are for a while. This would almost certainly be the preferred outcome for the government. It will not want significant house price falls going into an election. On the other hand, it won’t want to create a potential bubble either. House prices standing pat does look like a very real possibility just now. The SDLT holiday encouraged a lot of people to bring forward house purchases (and sales). Most residential buyers intended to stay in their new homes for at least three to five years. That means there’s a good chance many people who bought during the SDLT holiday will still be happy to stay where they are. Likewise, first-time buyers who bought after the end of the SDLT holiday are unlikely to be in any rush to move. It is therefore very possible that the housing market will slow down but that prices will stay firm. Arguably, that would be a decent result for buyers, sellers and real estate professionals alike. Please get in touch if you would like mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage.

The most obvious way to make money from your home is to let out space in it. The most obvious way, however, isn’t always the best one. In fact, it isn’t always even possible. Fewer and fewer people have extra space in their home, especially if they’re working from home. With that in mind, here are some alternative suggestions. Your attic Starting from the top, attics are usually junk rooms. If that sounds like you then it’s time to clean out the junk. If you’re looking to make money, then ideally you’ll sell it. If you can’t do that, then try donating it and claiming gift aid. This can get you a discount on your tax. If you can’t do either of that, clear it out anyway. Once you have the space clear, make sure it’s as well insulated as it can be. Your kitchen Businesses that make foods to sell are very highly regulated. For completeness, this includes pet foods. You can, however, use your own kitchen to give cooking demonstrations and lessons. You can also use it to create social media content related to food and/or drink. If you can build up a decent following, then there are lots of ways you can earn an income from it. For example, you could sell your own products or services. You could refer your followers to other people’s products or services. This might earn you a one-time fee and/or affiliate income. This sector is competitive. That means you should be prepared to work hard to build your following. It is, however, very definitely a viable option. Your bathroom Make the most of your private time by filling in surveys and/or entering free, online competitions. Neither is likely to make you a lot of money but then neither is going to take a lot of effort either. In any case, it’s different from reading and doing crosswords. Your living room Now that COVID restrictions are essentially over, your living room can once again be a place you can have guests. That means you can host parties, specifically sales parties. If you haven’t heard of these, they’re exactly what they sound like. You have a group of people around at your home, run a regular party and then invite them to buy goods and/or services. Sales parties have been around for literally decades. They went out of fashion for a while. At first, this was because of the internet. Then, of course, there was COVID. Now, however, they are well and truly back. There are loads of companies you can partner with. Alternatively, you can sell your own products or services. For completeness, if you do have culinary skills, then this is a great opportunity to showcase them. The laws on selling food don’t apply here because you’re not selling it. You’re giving it away for free. People may or may not then buy something else you are selling. Bedroom Not a spare one, just a regular one. Bedrooms can be great places for growing plants. There’s usually a decent amount of light and they tend to get peace and quiet. In other words, they’re not going to get bumped or have drinks spilt on them the way they can in other parts of the home. Plants really can be the gift that keeps on giving. You take cuttings of them, sell them and then they grow back. Many plant lovers are happy to pay for plants they know have been well looked after and are healthy. If you are really green-fingered, you could try growing more challenging plants that can have a higher value. Spare bedroom For completeness, if you have a spare bedroom then you can make money out of it by letting it out. The Rent-a-Room scheme may be a useful reference. Do, however, think carefully about all the practicalities and legalities of this.

Tempting as the idea may sound, it may be rather impractical to spend all winter indoors.  In fact, you may have to spend much more of it outdoors than you’d ideally like, especially if you have young children or dogs. Make sure your footwear has good grip If you’re a dedicated follower of fashion (or need to look smart for school or work) then look for footwear which has good soles as well as good uppers.  If you’re not so concerned about appearances then a good pair of walking/hiking boots and/or wellingtons can be a great investment in both your comfort and your safety. Quite bluntly, winter in the UK almost inevitably involves some degree of frost and ice and while you may try to avoid it, you’re probably going to have to deal with it to some extent.  Footwear with good grip can do a lot to help keep you upright. Give yourself plenty of time to cross the road Picking up from that point, give yourself plenty of time to get from A to B and, in particular, give yourself plenty of time to get across roads.  Walk, do not run, not even when you think the road is fine and not even when you’re on a crossing.  If you slip and go down on the road, a driver may not see you, not even in the daytime and especially not when it’s dark. Be well lit If you live in an urban area, you should, in theory, be able to rely on street lighting but given how important it is to see and be seen, it can be a very good idea to spend a little money on some personal lights, hi-vis and/or reflective clothing and a good torch, even an LED pocket torch.  That way you are always prepared and don’t have to rely on local-authority lighting. Be careful with strenuous physical activities When you exercise out in the cold, your body has to work not just to do the exercise, but also to keep you warm.  Now, there is some level of crossover here in that the exercise itself may generate some degree of heat, but even so, undertaking strenuous exercise in cold conditions can put a strain on your heart.  This can be bad news even for healthy individuals and people with known cardiovascular issues should take particular care. If you need to perform outdoor tasks, such as clearing snow from a pavement, try to do so when it is as warm as it’s going to be (e.g. in the middle of the day), wrap up warm, go gently, take regular breaks and listen to your body. Take care with alcohol First of all, if you’re going to be drinking, think about how you’re going to get home afterwards.  Secondly, remember that alcohol can stay in your system for quite a while so make sure to give yourself plenty of time to “detox” before doing anything complicated and/or dangerous, especially driving. Consider taking out (extra) insurance The dangers of winter provide a good opportunity to reflect on your insurance cover and whether or not it is (still) appropriate for your needs.  In particular, you might want to think about the cover you have (or don’t have) to protect you in the event of illness or injury, either of which could result in you being unable to work for a period.  Even if you are in paid employment, with work benefits, you may find that these are not as generous as you might have liked and that therefore it would be best to boost them with private cover.

The UK now officially has a new Prime Minister. That means a new Chancellor of the Exchequer and a new, unscheduled, budget. Although it’s being billed as a mini-budget, the new budget has a lot to unpack for anyone interested in the UK’s property market. Here is a quick guide to its key points. Stamp Duty is cut New Chancellor, Kwasi Kwarteng raised the Stamp Duty threshold to £250K for onward movers and £435K for first-time buyers. On the one hand, the move itself has been generally welcomed. On the other hand, the fact that the move is considered impactful clearly highlights the key problem with the UK’s housing market. There is simply not enough housing, especially not at prices regular people can afford. Addressing housing ability has been a stated priority for multiple governments. As is often the case with budgets, there is mixed news on that front. The National Insurance increase is reversed The 1.25% “Health and social care” levy will be reversed as of 6th November. This should leave a lot of working people better off to some extent. Of course, how much of a benefit it will be will depend on how much it impacted people to begin with. In other words, while it should benefit a lot of people, the benefit will probably be uneven. With that said, any measure that leaves people with more disposable income is likely to benefit the property market. Landlords should hopefully be less concerned about the prospect (or reality) of arrears. Prospective buyers will doubtless welcome anything that makes it easier to save for a deposit Income tax cuts are brought forward The previous chancellor Rishi Sunak promised an income tax cut by 2024 (i.e. just in time for the next scheduled election). This has been brought forward to April 2023. In addition to lowering the base rate of tax by 1p in the pound, Kwasi Kwarteng is also abolishing the top rate of tax. This means that the most high earners will pay is 40%, not 45%. How this will affect the property market will depend largely on what people decide to do with this money. Realistically, those on lower incomes may need to put the tax they save towards dealing with everyday bills. These seem likely to go up even further given that the pound has recently weakened against other currencies. Those on higher incomes, by contrast, might be eager to use their savings to improve their overall financial situation. They may be well aware that these cuts could be reversed especially if the next election returns a Labour government. If they have debts, including mortgage debts, they may prioritise paying these off as much as they can. If, on the other hand, they are debt-free (or have debts they can easily manage), they may look to put this extra money to work. This could mean investing in property. It could also mean investing in the stock market (or a combination of both). The government makes some business-friendly tax reforms The headline news for businesses is that the planned increase to Corporation Tax has been scrapped. It will now stay at 19% instead of rising to 25%. This decision will undoubtedly be a welcome relief for businesses. It is, however, worth noting that it only has an impact if businesses actually make profits in the first place. Another move that received a lot of media attention is the lifting of the cap on bankers’ bonuses. It is, however, questionable just how much impact this will have in the real world. By contrast, the repeal of the IR35 reforms seems to have largely gone under the radar. It is, however, likely to be a cause for celebration for contractors and private businesses alike. Anything that makes life easier for businesses is likely to benefit the commercial property market. The benefits are also likely to feed through to the residential ones as more work becomes available for more people. If you’re worried about your mortgage, please get in touch.

Children are back at school. Students are back at university. Strictly is back on TV. All the signs, therefore, point to summer being over and autumn getting started. Now, therefore, seems as good a time as any to look at what that could mean for the housing market. Increased reliance on listings and virtual viewings The UK has several months of short, cold days ahead of it. Buyers (and sellers) have become accustomed to using listings and virtual tours due to COVID19. Putting these two facts together raises the possibility that virtual viewings could become commonplace this autumn/winter season. Buyers as a whole may not, yet, be quite willing to buy a property without seeing it in person. They could, however, potentially be willing to attend a virtual open house. If the outcome of this was favourable, they could then attend a real-world viewing. Using this approach might also help to prevent COVID19 from flaring up again. COVID19-related hold-ups Hopefully, the main brunt of COVID19 is now well and truly over. The condition itself, however, is very much still around. Vaccinations and less dangerous variations have thankfully brought down the number of fatalities. It is, however, entirely possible that people are going to get sick with it and need time off work. It’s also very possible that sellers (and buyers) could become wary of this and reinstate COVID19 protocols. Overall, it’s hard to see how the UK could get through the cold seasons without some kind of spike in COVID19 cases. It, therefore, seems fairly safe to assume that there will be some level of COVID19-related delays. Individually, these may only be minor. Put together, by contrast, they may slow down the housing market significantly unless everybody involved with it pulls together. Difficulties selling older property Rented properties already have to meet minimum energy efficiency standards (MEES). Older properties may need significant upgrading to meet these. As a result, they may already be of, at best, limited interest to investors. They may also be or at least become challenging to mortgage. The Department for Business, Energy and Industrial Strategy has already proposed setting mortgage-lenders targets for energy performance. The consultation period for this ended last February (2021). So far, nothing appears to have come of it. That does not, however, guarantee that nothing will come of it in future. Even without regulation, however, older property may still, effectively, become extremely hard to mortgage. Buyers have to be able to demonstrate that they can afford their mortgage repayments without compromising their essential bills. Older properties can require a lot of fuel to heat (due to their energy inefficiency). This can make it harder for people to meet a lender’s affordability criteria. Alternatively, older properties may simply become less popular. This may not result in them going unsold. People still need housing. It may, however, result in them receiving lower offers due to potential buyers factoring in the cost of upgrading them. New demand for city properties Not all jobs have gone fully remote. Hybrid and on-site jobs still require the holder to be in the workplace at least some of the time. So do many degree courses. Even for totally on-site jobs (or courses), commuting is often an option. The further outside the city you live, however, the more arduous a regular commute becomes (and vice versa). What’s more, living in the city isn’t always just about having a shorter trip to work. It can be a lifestyle choice too, particularly for younger adults in their pre-child years. With COVID19 restrictions now largely gone, cities have the opportunity to remind people just how much fun they can be. This could help to fuel organic growth in the demand for city properties. For mortgage advice, please get in touch On clicking the third-party website links, you will leave the regulated site of The Mortgage Network. Neither The Mortgage Network nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site

Back when COVID19 was still in full force, the UK government instigated a Stamp Duty holiday. This prompted a buying frenzy and, unsurprisingly, house prices rose. Since then, the pace of house-price growth has slowed. Overall, however, property prices are still rising. Why is this and what does it mean? The forces driving high prices in the housing market The two main forces driving house-price growth and inflation and lack of supply. The impact of inflation Probably the most obvious explanation for continued house-price growth is the impact of inflation. Inflation is, literally, the rate at which prices increase. Right now, it’s particularly high. The direct impact of high inflation is the fact that a high tide floats all boats. The indirect impact of it is that it encourages people to buy now in case they can’t afford to later. This indirect impact is likely to be particularly strong in the housing market. There are two main reasons for this. Firstly, owning a property is a widespread ambition in the UK. Secondly, in the UK, property purchases are often financed by mortgages. That means buyers have to pay interest on what they borrow. Interest rates have been trending upwards in the UK. This puts buyers under a certain level of pressure to lock in a fixed-rate deal now. If they don’t, they could find themselves trying to buy property when both house prices and interest rates are high. The mechanics of supply and demand In addition to the overall shortage of housing stock, there are more subtle issues with the supply of housing. For example, some of the UK’s properties are in places where it is challenging to find work nearby. The trend toward remote-/hybrid working may address this to some extent. It is, however, debatable how soon this will be. The key point to remember here is that most remote-/hybrid roles depend on a solid internet connection. Even today, in some places, the UK’s digital infrastructure needs significant improvement. Similarly, on-site work usually depends on transport infrastructure. Again, the extent and quality of this are highly variable throughout the UK. In principle, using personal vehicles can go some way to addressing this. In practice, that leaves the problem of finding parking when you reach your destination. Even when housing is in a viable location, there may be limits on its practical usefulness. For example, a lot of the UK’s housing stock was built long before accessibility became a consideration. Some of these can be adapted but many cannot. Energy efficiency is also an issue. Again, this is largely due to the average age of properties in the UK. As with accessibility, sometimes these issues can be addressed but often there is a limit to what can be done. What’s more, when improvements are possible, they are often expensive. Obviously, this is a disincentive to potential buyers. What does this mean for buyers and sellers? Buyers should be very careful to avoid overstretching themselves. It is hugely unlikely that the UK property market will crash. It is, however, very likely that it will end up running out of steam at some point. When it does, buyers who can keep paying their mortgages can just sit back and let time do its work. Those who can’t, however, may find themselves forced to sell at a loss or even to deal with foreclosure. Sellers should make sure that buyers are actually capable of making good on an offer before they accept it. Remember that sales are only secure once they are complete. Even after contracts have been exchanged it’s still possible for buyers to pull out. They may prefer to swallow a relatively small loss than to risk a larger one. For mortgage advice, please get in touch. Your property may be repossessed if you do not keep up repayments on your mortgage.

It’s probably not a surprise that the housing market has slowed down over the course of the past year. The extent of the slowdown may, however, come as a surprise. HMRC recorded 55.1% fewer sales in June 2022 than in June 2021. Here is a quick look at the three main factors that may lie behind this and what they mean in practice. The end of the SDLT holiday Quite possibly, the single biggest driving force behind this drop is the end of the SDLT holiday. The decision to pause Stamp Duty may have done a lot to keep the economy relatively strong during the pandemic. It was, however, almost inevitably going to result in a post-holiday financial hangover. The holiday period was a massive incentive for people to push forward buying and selling decisions. As such, it was effectively setting the scene for at least some level of housing slowdown after it ended. Realistically, only time can address this. Over time, life events will require (or at least encourage) people to move. This will help to set the housing market back on a “business-as-usual” footing. Broader housing cycles Home sales are generally compared to sales at the same time in the previous year or years. The reason for this is that the housing market goes through recognisable micro-cycles. In a typical year, spring and autumn are much more active periods than summer and winter. On a broader level, however, the housing market goes through larger-scale macro-cycles. At the start of a cycle, house prices are low. This engages buyer interest and causes prices to rise. Eventually, prices reach a point where they are no longer affordable. Buyers then drop out of the market and prices flatline or drop. Occasionally, they crash but this is highly unusual. Over time, wages catch up with house prices and the cycle begins again. This cycle is a constant in the housing market. Last year, however, its progress was influenced by the SDLT holiday. The buying and selling frenzy this created pushed up house prices well beyond normal levels. So far, they appear to be holding steady. This suggests that, going forward, there will be fewer transactions but at higher prices. Again, only time can address this. Inflation and interest rates Post-COVID19 (and post-Brexit), the UK is definitely not the only country dealing with uncomfortably high inflation. It is now looking increasingly like the Bank of England is going to take a fairly hard stance with it. The BoE may not be in a rush to raise interest rates. At the same time, they are clearly not going to risk being seen as hesitant about it either. Realistically, the actions of central banks can be as much about sending a message to the markets as about directly influencing inflation. With that said, the BoE still has to maintain its credibility. In other words, if it says, or even indicates, that it will do something in a certain set of circumstances, then it needs to show itself willing to follow through. What that means in practice, therefore, is that the UK can expect the BoE to keep on raising interest rates until inflation is clearly within tolerable levels. This is obviously going to increase the cost of borrowing in general and mortgages in particular. It may not affect existing home-owners. Many of these are likely to have locked in fixed-rate deals. It will, however, affect first-time buyers. On the plus side, higher interest rates will also increase the returns on cash deposits. This could be very helpful for people saving for deposits. At a minimum, it will help their savings to grow more quickly. At best, it could even provide people with extra motivation to prioritise saving. For further advice please get in touch

A child’s first day at school is a big moment for both them and their parents. For most parents, however, it’s also a relief, especially financially. Even so, time flies and it really won’t be too long before they’re grown up and looking to leave school. At that point, a parent’s life can start to get expensive again. The costs of young adulthood These days, very few people walk out of school and into full-time jobs aged 18. It is now practically impossible to do so at the age of 16. This means that most young adults will need to continue their education and/or training in some way. They may also need, or at least, very much want private training in key life skills such as driving. After this, there’s the challenge of getting on the housing ladder and potentially having children. It would be nice to think that both houses and childcare will be much more affordable by the time today’s generation of children are grown up. Realistically, however, it’s risky to bank on this. If nothing else, creating a nest egg for your children gives you (and them) the reassurance of knowing that there is money there for them if they ever need it. If they don’t, you or they can always use it for something else, like having fun. Insurance is your starting point Before you start thinking about investing for your children, make sure you have adequate insurance. This protects you, your children and anyone else who matters to you, from short-term shocks. The key policies you need to consider are life insurance, income-protection insurance and critical-illness cover. If you are earning an income, then you should probably have all of these policies. If you’re employed, you may find that you get at least some level of cover through your employer. You may, however, still want to take out extra cover. If you’re a home-maker, you still need life insurance and, if possible, critical-illness cover. You may not be earning an income as such but the work you do certainly has value. If you become unable to do it, somebody else will start charging for what you currently do for free. You need to be prepared for that. Finally, also remember to insure your key assets if you possibly can. In particular, think of protecting anything that may generate medical bills (human or animal) or legal bills (ditto). Pets are an obvious candidate for insurance. Cars are often candidates for insurance above the legal minimum. Homes and their contents also generally benefit from insurance. Growing funds for your children When thinking about how to grow funds for your children, there are two key questions you need to answer. Firstly, how long can you afford to lock away money? Secondly, how much control do you want to have over the money? Answering these questions will generally highlight which options are most suitable for you. For example, at one end of the time scale, there are basic savings accounts. These aren’t great for growing money. In fact, they are highly unlikely to beat inflation. They do, however, keep money both safe and easily accessible. At the other end of the scale, there are pension funds. These keep money locked away until your children are of retirement age. They can, however, set them up comfortably for their later years. Likewise, at one end of the control scale, there are Junior ISAs and at the other, there are trust funds. Junior ISAs belong to your children, not you. That means funds are locked away until they turn 18. They are then released to your children to use as they wish. Trust funds, by contrast, are set up according to your instructions. That means the money can be released as, when, how and only if you say so. I can help you and your family find the right product mortgage or protection policy to suit your needs and financial situation, please get in touch to speak to me. An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested. For pet, motor, building and contents insurance we act as introducers only

The UK’s property market is notoriously resilient. Crashes are very few and far between. There are occasional low periods. In practice, however, all these mean is that house-price growth slows and properties can take a bit longer to sell. Demand for rental property is generally strong. With that in mind, here is a quick guide to buy-to-let mortgages. What is a buy-to-let mortgage? A buy-to-let mortgage is a mortgage to purchase a property intended for use as a standard residential letting. You do not need a buy-to-let mortgage if you want to let out a room in your own home. With that said, you will need a standard residential mortgage that allows this. Likewise, a standard buy-to-let mortgage is not suitable for buying commercial property. This includes property that is intended to be used for short-term letting (e.g. staycation property). If this interests you, then you need a mortgage for commercial property. What buy-to-let mortgages are available? As with mortgages for residential property, you can get both repayment and interest-only buy-to-let mortgages. In complete contrast to the residential-property market, however, interest-only mortgages are commonplace rather than niche. The main reason for this is that they are more affordable at the outset. Over the long term, however, repayment mortgages can easily become the more economical option. This is because repayment mortgages, as the name suggests, repay the capital as well as the interest. This means that, over time, the amount owed reduces. As it does, the amount of interest charged also reduces. The end result is that you can end up paying less interest overall. You also build up equity in the property and end up owning it outright. This can be an important point. Landlords should not rely on selling a property to pay off a mortgage. Also, as with the residential property market, landlords can choose from variable-rate and fixed-rate mortgages. Both deals are available for various lengths of time. The benefits and disadvantages of variable- and fixed-rate mortgages are essentially the same as for the residential property market. In short, variable-rate mortgages can be more economical overall but do leave you exposed to fluctuations in mortgage rates. With fixed-rate mortgages, you have security for the length of the deal. This security can, however, come with a price premium. Qualifying for a buy-to-let mortgage As with residential mortgages, the exact criteria for getting a buy-to-let mortgage typically vary. This is partly down to lenders’ policies (especially their appetite for risk). It’s also partly due to overarching market conditions. In general, however, lenders evaluate applicants for buy-to-let mortgages similarly to applicants for residential mortgages. You’ll be expected to have a deposit. As always, the more you can put down, the more likely it is that lenders will be interested in you. Currently, you should be looking to put down a minimum of 25%. When calculating how much you can afford, remember to allow for transaction costs, particularly the Stamp Duty surcharge. Lenders assess both the income you can expect to receive from the property and your own income. The fact that lenders want you to have an income means they generally want you to have paid off your mortgage by a certain age. Currently, this is around 70-75. It may be increased or removed in future due to the Equality Act 2010 and/or social changes. Remember that lenders will be interested in your net income. That means you will need to show that your calculations allow for maintenance, repairs and voids. Even so, you may be required to have landlord’s insurance and/or life insurance. These are to protect your lender but they can also protect you and your loved ones. If you require mortgage advice and would like to speak to one of our advisors, please get in touch. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE The FCA does not regulate commercial mortgages and we act as introducers only For landlords’ insurance, we act as introducers only

Most people want to keep their tax bill as low as possible. Now, the cost of living is creating an extra incentive to do so. With that in mind, here are five tips on ensuring you keep as much of your money as possible. Examine your employment conditions If you’re employed, check to see if any of your benefits are taxable. If they are, make sure they’re worth the tax or withdraw from them. Also, consider whether you could afford to save more towards your pension. If you could, then increasing your contributions will reduce your taxable income (within limits). It will also help to give you a more comfortable retirement. If you’re self-employed claim all your tax-deductibles If you’re self-employed, you don’t get benefits the way employees do. On the other hand, you are likely to have a lot more scope for claiming tax-deductible expenses. Make sure you claim everything you can. If you file your taxes yourself, it may be worthwhile to switch to using an accountant. An accountant can also advise on whether it would be better for you to work as a sole trader or as a limited company. This can have major implications for your taxes so it’s definitely worth getting right. Regardless of which structure you use, you can have a pension. Again, it’s worth making the highest level of contributions you can afford. This reduces the amount of Income Tax and NI you pay in the present. It also helps you to enjoy a better retirement in the future. Remember your ISA allowance Depending on your age, you may be able to have more than one ISA. Younger adults can have both a Lifetime ISA and a regular ISA. Whether or not this is a good idea depends very much on your situation. LISAs can be a good way to save for a deposit on your first home. Just be aware that withdrawing funds for any other purpose attracts a hefty penalty. Using a LISA to save for retirement is much more of a grey area. If you’re interested in it, then it’s advisable to get professional advice before you commit. Children aged 16-17 can have both a Junior ISA and an adult Cash ISA (not a Stocks and Shares or combined ISA). Opening a Junior ISA for your child can be a cost-effective way to save for their future. There are, however, two important caveats to remember. Firstly, as with LISAs, once the money is in the ISA, it’s locked away until your child turns 18. You cannot access it at all, not even if you pay a penalty. Effectively, as soon as the money goes into the account, it becomes your child’s not yours. Secondly, this means that as soon as they turn 18, they can spend it however they want. Consider reinvesting your dividends If you don’t need dividend income just now, then you might want to look into the option of having your dividends reinvested instead. Reinvesting dividends can actually bring you better long-term returns than just taking the cash. This is particularly true now since interest rates are still fairly low. Reinvesting dividends also means you avoid paying Dividend Tax. If you do need some dividend income, then see if you can keep it below your tax-free allowance. This currently stands at £2000 per year. Make use of marriage allowances Couples who are married (or in a civil partnership) may be able to lower their joint tax bill by making use of marriage allowances. In particular, someone whose earnings are below the personal allowance can transfer up to 10% of their personal allowance to a higher-earning partner. Similarly, a higher-earning partner can pay into a pension fund for a lower-earning partner. The lower-earning partner is granted the equivalent of the tax relief. For mortgage and protection advice, please get in touch. For savings, investments, pension, and tax planning we act as introducers only The FCA does not regulate some forms of tax planning

Your house is basically a pile of bricks and mortar. Your home is whatever’s inside it that matters to you. Obviously, it’s important to insure your house itself appropriately since you need somewhere to live, but it can be easier to determine the insurance value of your house itself than the value of the contents. Here are some tips on protecting what really matters. Take care of the un-insurable Un-insurables are anything which can’t be replaced. In practical terms that means: people, pets, documents, photographs and special possessions. For people and pets, think of how you would get everyone out of the house in the event of a fire or flood blocking your access to your main exit points and make sure you invest in whatever you need for that to happen (for example chain ladders and harnesses which allow you to get large dogs out of upper floors) and make practice runs. For documents and photographs, if possible make digital copies and store them both in the cloud and on a medium you can easily take with you in the event of a fire (such as a portable hard drive). If you still want or need to keep paper copies, invest in a safe which gives protection against fire and flood. Likewise if you have any other possessions, such as jewellery, which would be irreplaceable, look for a safe which can protect them against fire and flood as well as theft. Review your possessions and their storage Life goes on from day to day and it’s easy to lose track of what we bring into our homes and how it can impact our insurance cover. It’s also important to remember that items we own can change their value over time. For example, consumer electronics generally depreciate, but classic IT equipment which may have been stored away and forgotten can actually appreciate in value as can jewellery, collectibles, art, musical instruments, antiques and such like. Therefore it’s important to stop every so often and do a double-check of what you own and how much it is currently worth. Overvaluing the contents of your home will raise your insurance premiums, but undervaluing it can leave you short in the event of a claim. You will also need to look at how your possessions are stored. Garden sheds are probably the single biggest example of what a difference this can make. Some home contents policies exclude them, others will include them but there may be conditions attached regarding security features and the value of the items which can be stored in them. Have an expert review your cover Getting the right cover for your possessions starts with knowing what your possessions are, where they are stored at how much they are worth. After that, however, you may find that you have a number of options open to you and while a standard home-contents policy is likely to feature in the insurance cover you need, you will benefit greatly from getting both the right policy and the right level of cover. In addition to this, you may also find that certain belongings which could be covered by standard home contents insurance would be better covered by specialist insurance or that they are already covered by another insurance policy. For example, those with expensive bicycles might find that they get an overall better deal by going for a specialist cycle-insurance policy and leaving their bicycle out of their home contents insurance altogether. Alternatively, you may find that you have a bank account which offers insurance for your mobile phone and hence you are already covered without paying extra. Picking your way through all this can be complicated, which is why getting expert advice can, literally, pay for itself. For general insurance products such as building and contents insurance, we act as introducers only