Swift Mortgages

6^th April 2019 was the start of a new tax year!

So what does that mean to you – or more importantly, what does it mean for your mortgage?

Well, if you’re self-employed, you may only just have submitted your tax return for the year ending April 2018.

But now another year end has come and gone you could submit your tax return for year ending April 2019 any time now.

Of course, you don’t need to submit your tax return until 31^st January 2020.

You could submit your 2019 tax return early….

But what would be the benefits of completing and submitting your tax return early?

• You would get it out of the way and not have to worry about completing everything in one month after Christmas
• You’d know in advance how much tax you need to pay and could start putting a little aside each month
• If you’ve had a better year financially than 2018, the sooner you submit your 2019 tax return, the better your income will show in the event you need to apply for credit

And this is why you may want to consider submitting early if you are likely to need to apply for a mortgage between now and January 2020.

Mortgage Capacity for a Residential Mortgage is calculated using your Income

If you need to apply for a residential mortgage any time before January 2020 and you’re self-employed, you’ll normally need to show your SA302 and Tax Year Overviews as proof of your income.

If your 2019 year is likely to be better than 2018 then your mortgage capacity may be better if you submit your 2019 tax year before submitting your mortgage application. This is because your income may be higher than last year.  

If you need to submit a mortgage application after the end of September 2019 you may limit your choice of lenders if you have not done your 2019 tax return. Although you do not HAVE to submit it before the end of 2020, the actual figures will be 18 months old* at the end of September 2019 and some lenders may not accept them as proof of your income.

*The 2018 tax return is showing the income earned during the financial year 6^th April 2017 and 5^th April 2018. By October 2019 that information will be 18 months old.

What exactly is an SA302 and Tax Year Overview?

The tax year runs from 6^th April to 5^th April the following year.

An SA302 is evidence of your earnings during that year.

The document is produced as a summary of the information you’ve submitted to HMRC for that particular year. It may include:

• Income from self-employment
• Salary if you are employed in a company you own
• Dividend income
• Income from rental property
• Income from savings and investments
• Income from employment if you are also self-employed

A tax year overview is a summary of the tax you’ve paid on the income specified in the associated year’s SA302.

Here is where you can find more information about getting your SA302 and Tax Year Overview:

Click Here for HMRC Guide

Questions?

If you have any questions about self employed income and mortgages then please give me a shout.

Your home may be at risk if you fail to keep up the repayments on your mortgage.

Get In Touch!

Email: heide@swift-mortgages.com

Mobile: 07903 302895

Phone: 01525 309300

Website: www.swift-mortgages.com

#SwiftMortgages

#NewTaxYear

#Mortgage

#BePrepared

Are you Considering a Buy to Let Investment Property Purchase?

A buy to let investment is different from buying a home for you to live in. So your thought process should be different.

It’s an Investment

Make sure you buy with your head and not with your heart. An old quirky cottage may look nice, but bear in mind that old properties are likely to face higher maintenance costs. If it costs a lot to heat the property, a tenant may spend one winter there and then decide it’s too expensive and move on.

Location

Investing in property, you want to look for somewhere that will be attractive to prospective tenants.

Is it near major roads?

Is it easily accessible?

Does it have good schools nearby?

Does it have easy access to amenities such as shops, restaurants etc?

Leasehold vs Freehold

Leasehold properties are often flats. This means that they are usually less expensive to buy than houses or freehold property. However, they normally have associated ground rent costs and/or maintenance charges. These maintenance charges are normally paid on a monthly or quarterly basis and cover the cost of paying for “shared areas” such as stairways, lifts, corridors etc. Often, the buildings insurance is covered in any service or maintenance costs.

These charges are paid by the owner and not by the tenant so you need to take them into account when working out the feasibility of the investment.

If the property is leasehold you should ask how many years are remaining on the current lease. If it’s a low lease remaining the property may on the market for less than you would expect, but a low lease can make it difficult to arrange mortgage finance.

Stamp Duty

If you already own a residential property that you live in, buying a 2^nd or subsequent property means you’ll pay more stamp duty. In April 2016 a 3% surcharge in stamp duty was levied on the purchase of all 2^nd homes. You can work out how much stamp duty you’ll pay by using this link and selecting the “additional property” option.

Click Here for Stamp Duty Calculator

Cost of Letting

Most landlords will instruct an agent to rent out the property and manage the property on their behalf. Usually the fee will be a percentage of the monthly gross rent (ie the rent the tenant pays). The agent will deduct their monthly fee and pay you the remainder.

Again, this is a cost that needs to be accounted for.

Financing the Property

If you need a mortgage to purchase the property, the amount you can borrow is based generally on the amount of rental income you could expect to receive each month. So, when you look at property make sure you ask the agent how much they consider you could achieve. If the selling agent is not a letting agent do your research and look at similar properties being advertised to let or contact a letting agent specifically. Before making an offer, it’s advisable to check with a mortgage advisor who can help you establish how much you could borrow, based on the projected rental income and the amount of deposit you have available.

Void Periods

If there is no tenant in the property for any reason, you as the owner will be responsible for the utilities and council tax between tenants. You will, of course, also be liable for the mortgage payments which will still need to be made even in months you receive less or even no rent due to a change in tenant.

Questions?

If you have any questions about buy to let investments or would like any further details then please get in touch.

Your home may be at risk if you fail to keep up the repayments on your mortgage.

Buy to let mortgages are not regulated by the Financial Conduct Authority.

Get In Touch!

Email: heide@swift-mortgages.com

Mobile: 07903 302895

Phone: 01525 309300

Website: www.swift-mortgages.com

#SwiftMortgages

#BuyToLet

#BePrepared

Hello and Happy New Year!

The first week of 2019 is almost over.

I said last week that during 2019 I’m going to be more specific about the subjects of my posts.  And I stand true to my word!

During January, we’ll be discussing “Property Purchases”.  So we’ll be talking about anything to do with buying a property.

We’ll be talking about the following:

Buyer types – Are you a first time buyer?  A next time buyer? An investment buyer?  Are you buying a holiday home?  A second home?  Are you buying a shared ownership property?

Stamp Duty – The amount of stamp duty you will pay on the purchase of your property will be dependent on the above factors.  Where can you check what you’ll pay?

Property types – Is it a house? Flat?  Leasehold?  Freehold?  Where is it located?  Is it of standard structure or is it a timber frame?  Thatched roof?  Ex-council?  Is it near commercial outlets?  Is it listed?  Does it have solar panels?

Deposit – Where is your deposit coming from?  Why does it matter?  How do you prove where your deposit has originated?

Conveyancers – What is a conveyancer?  What do they do?  Why do I need one?

Surveyors – What is a surveyor?  What do they do?

Of course we’ll also be talking about your mortgage.  Do you want a repayment mortgage?  Do you prefer interest only?  Do you have investments or other repayment vehicle to pay back an interest only loan at the end of the mortgage term?  Do you what a standard mortgage or an offset mortgage?

What should you expect from your estate agent?  What other third parties may be involved in the purchase?

If you have any questions that I can cover in a general way (for specific, tailored advice, please contact me directly) or if you have any suggestions or comments, please don’t hesitate to get in touch!

Thanks and I’ll see you again next week!

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Your home may be repossessed if you fail to keep up the repayments on your mortgage.

Buy to let mortgages are not regulated by the Financial Conduct Authority.

#SwiftMortgages

#BePrepared

#HappyNewYear

Hello again.  I hope you’ve had a lovely Christmas.

Whether you’re already back to work or if you’re off till the new year, I hope you’ve still go some lovely things to look forward to in the next few days.

Last week I reflected on the past year and how quickly it’s flown by!

This week I wanted to share with you my plans for next year.

In terms of managing my social media – Linked In, Facebook, Twitter and Instagram – I haven’t (to date!) had much of a plan or theme.  During 2019 I wanted to make it a bit more structured and hopefully, easier to follow!

I will take 12 general “themes” and have one theme each month (so far, so good!).  I will share content I think may be of use or interest.  For example, if I’ve come across an issue in a particular area which may be helpful to others, I’ll share it.  If you have any particular questions about any of these subjects them please feel free to get in touch.  Be aware that anything shared on social media is generic and shouldn’t be considered “advice”.

If you have any questions relating to your specific circumstances then please feel free to get in touch privately.

So, here’s what’s on the cards for 2019:

January – Buying a home. 

Buying a new property with a mortgage.  Being prepared, what you can do in advance and how to make the process as smooth as possible.

February – Re-mortgaging. 

Although the process is similar, preparing to re-finance your existing home is different to buying a new property.  Hints and tips.  And timings.

March – The Application Process. 

What should you expect during the mortgage application process?

April – Buy to Let. 

Financing an investment property with a mortgage is different to arranging a mortgage for a property you intend to live in.

May – Help available from other professionals. 

There is a whole ream of help out there from 3rd parties.  Knowing who to turn to may help you at some time now or in the future.  For example, estate agents, letting agents, accountants, tax specialists, book-keepers, financial advisors, surveyors and conveyancers.

June – Different types of Mortgage. 

Maybe “a mortgage is just a mortgage”, but do you know the different types of mortgages available to you and do you know their pros and cons? What may be beneficial to your friends or family may not be as good for you and your personal circumstances.

July – Your Credit Report. 

Things affecting your ability to get a mortgage relating to your credit score and credit rating may not be just as simple as adverse credit.

August – Equity Release. 

Recently there has been a huge increase in the requirement for “later life lending”.  People own their own property which is worth significantly more than they paid for it due to house price increases.  Often, though, people have only their state pensions to live on.  They are considered “asset rich and income poor”.  During August, we’ll talk about Equity Release.

September – Financial Protection. 

You own your own home.  But are you – and your home – financially protected in the event the worst happens?  If you lose your income, or your health is affected?  During September we’ll discuss financial protection.

October – Be Prepared. 

Being prepared means looking at options available to you in advance.  Making sure everything’s ready before the last minute.

November – Other types of Property Finance. 

A mortgage is one type of finance secured against the value of a property.  However, there are options available in the event a new mortgage or re-mortgage doesn’t suit your requirements or current financial situation.  For example, a secured loan or bridging loan may be something you’d like to consider.

December – Frequently Asked Questions. 

There are questions that come up often in my conversations with people.  They cover various topics and during December, I’ll share them with you.

I look forward to seeing you again in 2019 and thank you again for your engagement and support during 2018.

If you need to consider your options for a new mortgage or a re-mortgage next year then please don’t hesitate to get in touch at any time for a complementary initial review.

In the meantime, here’s wishing you a Happy New Year!

Your home may be repossessed if you fail to keep up the repayments on your mortgage.

Buy to let mortgages are not regulated by the Financial Conduct Authority.

Equity Release will reduce the value of your estate and can affect your eligibility for means-tested benefits.

#SwiftMortgages

#BePrepared

Hello again!

This week’s blog is really just one of reflection and gratitude.  An opportunity for me to say “thank you” to everyone I’ve worked with over the past 12 months: new clients, repeat clients, networking contacts, business colleagues and everyone else who has supported and helped me grow my business over the past year.

So, here’s a review of my year in pictures.

Today is the 21st December which is the shortest day of the year.  From tomorrow, days get longer and lighter.  It won’t be long till spring is with us again!

If you need to consider your options for a new mortgage or a re-mortgage next year then please don’t hesitate to get in touch at any time for a complementary initial review.

In the meantime, here’s wishing you a very Merry Christmas and Happy New Year!

Your home may be repossessed if you fail to keep up the repayments on your mortgage.

#SwiftMortgages

#BePrepared

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Budget: 29th October 2018

On 29th October, Philip Hammond, the Chancellor of the Exchequer, presented his budget to the House of Commons.

“…austerity is coming to an end – but discipline will remain” were his words, summarising his presentation.

Some of the key points he raised in the budget are here:

personal tax allowance

Personal tax allowances will be raised from April 2019.

• Basic rate tax threshold will be increased to £12,500
• Higher rate tax threshold will be increased to £50,000

capital gains tax

From April 2020, if you move OUT of your residential property and rent it out, private residence relief will be reduced from 18 months to 9 months.  This means if you sell the property after moving out you will be liable to capital gains tax on the sale of the property within 9 months.  This may occur if you move back in with parents or perhaps you move in with a partner and you rent your own home out.   If the reason for moving out of the home is disability or moving into a care home then the capital gains exemption period remains at 36 months.

From 6th April 2020 (the year after next) capital gains tax will be payable within 30 days of the sale.  Currently the system allows up to 21 months (depending on when the sale occurs) before the tax becomes due.

inheritance tax

The inheritance nil rate band will remain at £325,000 for 2019-2020.

The residence nil rate tax band will increase to £150,000 from 6th April 2019.

• Both of these allowances can be used before the 40% inheritance tax is implemented.

savings

The amount you are able to invest into an ISA remains at £20,000 for 2019-2020.

Children’s ISA limit from 6th April 2019 is £4,368.

pensions

The lifetime pension allowance will increase to £1,055,000 for 2019-2020.  So if you are planning to draw down your pension and your funds already exceed the current £1.03million limit it may be worth waiting until April to do so.

If you are employed and are in an auto-enrolment pension scheme, the minimum contributions will increase significantly (employer and employee contributions) so be aware of that.

stamp duty land tax (SDLT)

Stamp Duty Land Tax relief to first time buyers in England and Northern Ireland will be extended to the purchase of shared ownership property and this relief will be effective 28th October, 2018 and back-dated to 22nd November 2017.

Check your stamp duty liability here: SDLT Calculator

There are plans for a consultation in January 2019 regarding the implementation of a SDLT surcharge of 1% to non-residents buying residential property in England and Northern Ireland.

budget summary

To read parliament’s summary please click here: Parliament’s Budget Article

Your home may be at risk if you fail to keep up the repayments on your mortgage.

By clicking on any  link contained in this blog you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked sites.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

This week’s blog is all about credit! 

I’ve had a couple of cases this week which involved credit issues of various kinds.

Although your credit rating may be good, it’s worth checking what your existing credit balances are. In other words, check what your available credit is.

If you have credit cards, you will be told what the available credit is on your monthly statement. If you are almost at the capacity of available credit on your cards, even though you may have made payments on time, this may affect your ability to take out additional credit.

Late payments are not good! Make sure you pay at least the minimum payment required each month. On time! Your statement will specify the date by which you need to make the payment and also what the minimum payment is.

If you feel you are being charged unfairly for something you may feel justified not to make the payment.

However, be aware that the provider may present you with a default which will appear on your credit report. Even if you pay the bill after the default has been received, your credit report will show that it had been ‘satisfied’.

Lenders will have their own views on satisfied defaults. They normally expect satisfied defaults to have been satisfied for a specific period of time.

The length of time since the default was received can be a factor (even if it has been satisfied).

Whether or not the default has been satisfied will be a factor. Even if it was received years ago, if it hasn’t been satisfied it will still show on your credit report that you owe the money.

The amount of the default can also affect the decision. The higher the amount the worse the effect.

A default on a mobile phone bill or utility account will still appear on your credit report.

If your mobile phone bill includes the payment for the handset, it may appear on your credit report as a loan.

A late payment will appear as a late payment. The reason for the late payment is not specified on your credit report.

Late payments on a mortgage are late payments on a loan secured against a property. Failure to make the repayments on a mortgage could result in the property being repossessed.

Late payments because you forgot to make the payment is not ‘preferable’ to missing the payment because you didn’t have the money to pay it.  In fact, it might indicate a failure to manage your finances.

My top tips:

• Be aware of the credit you have available and the level of that available credit being used.
• Get a copy of your credit report before you apply for a mortgage.
• Know what loans, credit cards and hire purchase agreements you have.
• Know what the monthly repayments are.
• Set up the minimum payment to your credit card(s) each month.
• Make sure you have enough money to pay your mortgage payments each month.
• Ensure you’re registered at your current address on the electoral role.
• Don’t change your bank account and stop any standing orders/direct debits until you know they have been transferred to your new account.
• If you have adverse credit wrongly applied, query it and appeal it. Keep any written evidence of the reversal such as letters or emails. It may take a few weeks for any change to your credit report to be applied.
• To check your credit, you could use Equifax, Clearscore or Experian.

Hot off the Press!

An article from Martin’s Money Saving Tips explains Experian will help tenants’ rental payments to be recorded on their credit file, in association with Rental Exchange.  Read the article HERE*.

Any questions? Give me a shout!

Your home may be at risk if you fail to keep up the repayments on your mortgage.

*By clicking on the links you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked site.

Tel: 07903 302895

Email: heide@swift-mortgages.com

Website:www.swift-mortgages.com

#SwiftMortgages

#BePrepared

#Credit

This week I came across my first case of Japanese Knotweed which had been picked up in a survey on a property.   The buyer had withdrawn their offer on the property and the vendor instigated their own independent report.

Japanese Knotweed is the most invasive plant known in the UK and it can cause major problems to property.

It can grow up to 7 metres in height and it can push through walls, block drains and lift patios if not treated.

The known presence of Japanese Knotweed in the vicinity of your property (even it it’s further than 7 metres from the building or even on a neighbouring property) can affect the valuation.  Some lenders may refuse to lend if there is any sign of the plant, whereas others will take a view on it.  Usually dependent on the results of a specialist report.

Generally the Japanese Knotweed will need to be successfully treated or removed (with proof of responsible off-site disposal and a 10 year guarantee for the works).

The cost of either local herbicidal treatment or off-site removal will vary, as will the time taken for the results to be effective.

Some lenders will expect you to retain savings for future treatment in case of possible recurrences.

An article in “Mortgage Solutions” in September 2018 indicates between 4% and 5% of houses in the UK are directly or indirectly affected by Japanese Knotweed (see the article HERE).

Furthermore, the article says 850,000 – 900,000 properties have experienced a reduction in value of 10% due to its presence.

By law, vendors must disclose to potential buyers that the property has experienced problems with Japanese Knotweed and this information itself can act as a deterrent to buyers.

Japanese Knotweed originates from volcanoes in Japan and it’s hardy enough to grow up to 10cm in a day.  It takes light and nutrients from other plants which often kills them in its wake.

Knowingly allowing Japanese Knotweed to grow to a neighbouring property can result in a fine of £2,500.

April to October is the main season for the growth of Japanese Knotweed but mild winters have extended the growth period from March to November.

HERE is the link to an independent website which contains videos to show you how to identify signs of the plant.

By clicking on any of the links contained in this blog you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked sites.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Your home may be at risk if you fail to keep up the repayments on your mortgage.

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