I Want To Buy A House But I Am Self – Employed

This question has been put to me many times.

Clients Question.

Will I have to wait until I have three years business accounts, just over a year ago I became self – employed. However it now feels like the right time to buy my first home in Wolverhampton and I don’t want to wait. I don’t really want to go back to being an employee just to get a mortgage. My friends all have different opinions about whether I can obtain a mortgage or not.

Paul’s Answer.

Yes you can obtain a mortgage when you are self – employed by providing just one year’s proof of income. There are lenders out in the market place but of course only a small number. The rates will not be quite as competitive as a mainstream mortgage product because the lender is taking on more of a risk with the self – employed person.

If you have two years plus business accounts then you will have more choice and highly competitive mortgage products, subject to your credit profile and the nature of your self – employed status.

If you like a free consultation and a professional recommendation on the best mortgage for you call Paul on 01902 213201

Homes in Wolverhampton increasing by £36 a day

House prices in the West Midlands are rising by more than £36 a day, according to latest research. The West Midlands is Britain’s top performing region, with the average value of homes increasing by £36.00 per day, or £6,695 in total, since the start of this year. Here are the top three performers.

1. West Midlands, £6,695, £36.00

2. South East England, £6,463, £35.00

3. North West England, £3,731, £20.00

The statistics have been gathered by Zoopla from current house price data. “Property is a phenomenal way to build long-term wealth but if you are looking at your first property then maybe think of it as your home a reasonable stable long – term investment. House prices can go down as well as up but if you play the long game and don’t panic if prices go down as well as up you should see stable growth over the long term”.

If you like a free consultation and a professional recommendation on the best mortgage for you call Paul on 01902 213201

Wolverhampton A Buyers Market

Just this week, data has revealed that in London, prices are now falling at their fastest rate since the financial crisis of 2008. However in the North-West, growth is at 3.4 per cent. How can buyers and sellers in the Wolverhampton area make sense of what is happening.

But with political uncertainty around the country’s next Prime Minister, a potential General Election and concerns around how Brexit will play out, buyers are mostly waiting and sitting on their hands but they may be in for a shock. What do I mean well at a micro level where I am based in Wolverhampton the market is still doing well, after Brexit with all the pent up demand prices could move upwards pretty fast.

All eyes are on the North-West and the Midlands. By region, the North-West recorded the highest annual house price growth at 3.4 per cent in the year to May 2019. Close behind is the West Midlands, where prices increased by 2.7 per cent, according to (ONS) data. The Midlands’ economy has been boosted by big firms such as HSBC opening offices and various new businesses opening up larger sites in the region. HS2, the high-speed railway which, it is planned, will connect London to towns in the Midlands and the North, is also helping to boost prices.

If you’d like a free consultation with an expert and a professional recommendation on the best mortgage for you, call Paul on 01902 213201

Wolverhampton A Black Country Property Hot Spot?

According to new analysis of the Land Registry data base there has been a property price rise of 35% in the value of Wolverhampton property in the WV14 area. This has occurred in one year from an average of £82,500 in 2017 to £111,250 in 2018. We don’t have a full break down of the data so it will include all the different property types of house’s and flats.

Whilst this is great news for the area in my opinion if you are looking to purchase your first home or to move up the property ladder asset growth should not really make any difference because you are looking for somewhere to live regardless. However the fact remains the longer you leave it to purchase your home in Wolverhampton the more you will pay for it.  Property investors and Buy To Let landlords will have a different perspective on the property market, but if they play the long game and keep their properties for a number of years they will have a secure asset.

If you’d like a free consultation with an local expert based in Wolverhampton and a professional recommendation on the best mortgage for you, call Paul on 01902 213201

Strong Rental Growth In the West Midlands

Strong rental growth in Wolverhampton is good for Landlords and home buyers a like, sadly not if you are renting as rents very rarely decrease over the long term, but tenants do have the advantage of greater flexibility, and can move location quite easily.

Monthly Rent costs in the West Midlands has increased by 4% over the past year from April 2018 to April 2019. The rental market in England and Wales continues to grow steadily. And during April, average rents increased to £861 per month, which is a 0.5% rise from last April”. With the strongest rental growth, the West Midlands saw rents rise to £641 per month in April. The region overtook the south-west, which featured a 3.7% increase in rental prices.

Regardless of the short-term rent fluctuations the Wolverhampton property market remains a great place to invest, with landlords also enjoying stable returns over the long term. However, landlords make sure that you are on the best Buy to Let mortgage product for your circumstances so you are not wasting thousands of pounds each year by being on the wrong mortgage product.

If you’d like a free consultation with an expert and a professional recommendation on the best mortgage for you, call Paul on 01902 213201

Selling Fast In Wolverhampton.

New research has explored how long it would take to sell property in 10 locations suggested as ideal for investment: Stockport, Coventry, Wolverhampton, Birmingham, Peterborough, Colchester, Manchester, Canterbury, Luton and Enfield.

Data has been gathered and analysed from all of these postcode areas which then identified the Buy to let property hotspots. Here are the results of all the buy-to-let hotspots analysed, property in Stockport sells the quickest taking just 104 days to sell. In second place is Coventry, where properties take 124 days to sell.

The third location with the fastest-selling property market is Wolverhampton. In Wolverhampton it can take, on average, 138 days to sell and its fastest selling postcode is WV8 – with a sale wait of just 92 days. If you are wandering then WV8 is the village of Codsall and the surrounding areas.

Locations like Stockport, Coventry and Wolverhampton have the benefit of lower property prices compared to the south and a fast growing local property market. This is something investors looking at Wolverhampton should take advantage of now remember at the moment we as a country are in a Brexit dip, however once Brexit has been managed growth in Wolverhampton will accelerate.

If you’d like a free consultation with an expert and a professional recommendation on the best mortgage for you, call Paul on 01902 213201

How to find a mortgage broker in Wolverhampton.

When you apply for a mortgage the process can seem overwhelming that’s why 98% of the public use a mortgage broker.

There are a lot of different ways of finding a mortgage broker however beware of the small percentage of estate agents who pressure people by saying they need to be qualified by their in-house mortgage adviser. This is incorrect and bad business practice, a good way of finding a good mortgage broker is by asking friends and family. If you cannot find a mortgage broker by recommendation then use google and look for a broker with positive reviews.

Find a broker who specialises in the type of mortgage that you need whether that is a mortgage product for a self-employed person or a business owner or a buy to let mortgage. Have a chat with the mortgage broker, can you work together? Do you trust them?

If you’d like a free consultation with an expert and a professional recommendation on the best mortgage for you, call Paul on 01902 213201


Every Little Helps

Here we are at CAARS animal rescue today donating much needed supplies of dog food and treats. Keep up the hard work taking care of the lovely cats and dogs 🐶. Paul Thomas at Apple Finance Wolverhampton supports adopt don’t shop. See you soon with another donation kind regards Paul Helen and Lily the Border Terrier🐾 xx


Landlords You Need To Know – The Top 10 Tips

Being a landlord can be confusing, new regulations changes to the licencing system. New regulations coming in, almost it seems every week. No wander landlords in Wolverhampton and the West Midlands are feeling overwhelmed

1. Cashback is back

Certain lenders are offering cashback on buy to let mortgages.

2. Mortgage interest tax relief

Landlords are continuing to feel the pain of the cuts to mortgage interest tax relief. Which will is still being phased in until April 2020.

The 2019-20 tax year begins in April, meaning Wolverhampton landlords will only be able to claim 25% of their mortgage tax relief when filing their tax returns.

3. HMO licensing

Changes brought in last October mean Wolverhampton landlords who let shared properties in Wolverhampton or indeed any part of the country, will now fall under House in Multiple Occupation (HMO) licensing rules.

In October, the three-storey rule was removed, so any large flat or house share of five or more people now requires an HMO licence.

Local schemes – certain parts of Wolverhampton fall under the article 4 regulation

Article 4 directions restrict permitted rights either in relation to a particular area or site, or a particular type of development anywhere in the local authority’s area. When an article 4 direction is in effect, a planning application may be required for development that would have otherwise been permitted.

4. The Buy-to-let Lender trend

During such uncertain economic times, it is important for landlords to keep up to date with the buy to let mortgage market. Landlords usually need to prove the rent they’ll receive will cover at least 125% of their mortgage payments. Certain lenders depending on product and criteria request 130% – 140% interest cover ratio.

5. Energy efficiency (EPC)

The minimum energy efficiency standards were launched in April last year, what does this mean well, any renewed tenancies and all newly rented out properties have to have a minimum energy rating of E or above from April 2020 if the EPC is below E landlords will not be able to continue letting the property.

6. Letting fees ban

A ban on letting agents charging fees to tenants will come into force on 1 June 2019. From 1 June, the only costs landlords and agents will be able to charge tenants for will be: Rent.

A refundable deposit, capped at six weeks’ rent. The cap could be five weeks’ rent for properties where the annual rent is less than £50,000. A refundable holding deposit to reserve the property, capped at one week’s rent. Changes to the tenancy requested by the tenant, capped at £50. Early termination of the tenancy requested by the tenant.

Defaults by the tenant, such as fines for late rent payments or lost keys. These must be “reasonable costs”, with evidence given in writing by the landlord or agent. Issues for which the tenant is at fault, such as the replacement of lost keys. Utilities, communications services and council tax. Contract changes or termination when requested by the tenant.

7. Stamp duty surcharges

The 3% buy-to-let stamp duty surcharge appears to be here to stay

8. Brexit

You will have to search the market hard for your dream home because of Brexit lots of sellers are waiting for a certain outcome. If you wait for the market to move subject to Brexit you will pay a lot more for your first home and also the saga of Brexit and its aftermath could dare I say it go on for years.

9. Eviction rules

MPs have been debating section 21 eviction rules after campaigners claimed that the current laws can result in homelessness.

At the moment landlords can give a section 21 notice of possession to tenants to inform them they wish to take back possession of a property at the end of a fixed term. However watch this space as this could be on the cards for Wolverhampton Buy to Let landlords.

10. Client money protection

From the 1st of April, all letting agents in England will need to be members of an approved Client Money Protection (CMP) scheme. These schemes protect the rent a tenant pays to the letting agent, for example if the agent goes out of business the tenant should get most of their money back.

If you’d like a free consultation with an expert and a professional recommendation on the best mortgage for you, call Paul on 01902 213201

Wolverhampton Property and Brexit

According to Rightmove the largest property portal in Britain sooner or later there will be a Brexit rally. This is likely to affect property prices in Wolverhampton at some point during the summer. Rightmove has said asking prices on its portal jumped by an average of 1.1% an increase of £3,447 in the month to April 6th. People looking to sell or purchase their home will start to realise that whilst the Brexit extension saga continues, not much is happening and they might as well continue with their property plans.  We have a level of stability at the moment in uncertain times, but the property market has always been unpredictable and always will be.

There is the potential for property prices in Wolverhampton to fall over the short term, but once the Brexit bounce back occurs when it is finally sorted, demand will pick up. When you put the ingredients of cheap mortgage rates and a, pent – up demand together prices will pick up. The reason for mentioning this is whether you are a buy to let investor, a first – time buyer or looking for your next home it is better to conduct your purchase now whilst the market is stable. If you start the process when full confidence in the property returns, the competition will be fierce and it will cost you more money!

Speak to Paul for mortgage advice on 01902 213201